108 2024, olume 27, issue 1, pp. 108–120, DOI: 10.15240/ ul/001/2024-1-007
Business Adminis a ion and Managemen
De e minan s o he impac
o ESG policy and co po a e go e nance
on employee igh s
Chiao-Ming Li1, Joe-Ming Lee2
1 Soochow Uni e si y, Facul y o Law, Depa men o Law, Taiwan (R.O.C.), ORCID: 0000-0002-0394-3843,
[email p o ec ed];
2 Fo Guang Uni e si y, Facul y o Managemen , Depa men o Applied Economics, Taiwan (R.O.C.), ORCID: 0000-
0002-2964-2467, [email p o ec ed] (co esponding au ho ).
Abs ac : To comply wi h in e na ional de elopmen ends in ecen yea s, Taiwanese go e nmen
agencies ha e o mula ed en i onmen al, social, and go e nance (ESG) legal policies and
s eng hened publici y o lis ed i ms o p epa e sus ainabili y epo s. Go e nmen agencies
a e ying o use ESG legal policies o g adually guide i ms o ake en i onmen al, social, and
go e nance measu es and mo e owa d sus ainable ope a ions. Howe e , employee igh s we e
easie o i ms o igno e in he pas , so paying a en ion o he co ela ion be ween employee igh s
and o ganiza ional go e nance is necessa y. This pape aims o analyze he ela ionship be ween
he o ganiza ional go e nance and employee u no e a e o Taiwanese ood i ms in he en yea s
om 2011 o 2021 h ough a panel eg ession model. The esul s show ha he e is a U-shaped
ela ionship be ween boa d size and employee u no e . The e is an in e ed U-shaped ela ionship
be ween he de elopmen o majo sha eholde s’ sha eholding and he s eng h o human esou ces.
The esea ch esul s show ha o ganiza ional go e nance is signi ican ly ela ed o employee
u no e . Finally, his pape belie es ha paying a en ion o human esou ces will con ibu e
o he sus ainable de elopmen o en e p ises. The e o e, in e ms o o ganiza ional go e nance
policies, al hough go e nmen agencies ha e o mula ed ele an e e ence s anda ds, i ms should
ha e unc ions mo e conduci e o de eloping human esou ce measu es. These unc ions include
u ilizing he guiding ene gy o he boa d o di ec o s unc ions, and sha eholding s uc u e design,
which will u he help he s able de elopmen o human esou ces. Fi ms need high-quali y human
esou ces o make b eak h oughs in echnology o he ma ke . The e o e, when i ms cul i a e
high-quali y human esou ces, hey no only ely on employee wel a e condi ions bu conside
long- e m o ganiza ional go e nance and human esou ce de elopmen as necessa y planning
condi ions. These ac o s will d i e i ms o ha e he abili y o b eak h ough he s a us quo, alue
all s akeholde s, and c ea e an a i ude owa d sus ainable business de elopmen .
Keywo ds: O ganiza ional inance, boa d size, R&D in ensi y, sus ainable.
JEL Classi ica ion: C23, D24, G21.
APA S yle Ci a ion: Li, C.-M., & Lee, J.-M. (2024). De e minan s o he impac o ESG policy
and co po a e go e nance on employee igh s. E&M Economics and Managemen , 27(1),
108–120. h ps://doi.o g/10.15240/ ul/001/2024-1-007
In oduc ion
In ecen yea s, i ms’ p ac ice o en i onmen-
al, social, and go e nance (ESG) has a ac ed
global a en ion. Pu suing employee u no e
is indeed an essen ial key ac o o i ms o pu -
sue sus ainable de elopmen . Employees a e
essen ial asse s o he i m. Employees and
he i m ha e an employmen con ac , and
109
2024, olume 27, issue 1, pp. 108–120, DOI: 10.15240/ ul/001/2024-1-007
Business Adminis a ion and Managemen
each has igh s and obliga ions. In addi ion
o wo kabili y, he i m’s expec a ions o em-
ployees include wo k a i udes such as loyal y.
Howe e , belie does no only come om sal-
a y and wel a e condi ions. Fi ms mus ea
employees well and gain hei us in exchange
o commi men and educe employee u no e .
I he i m canno mee hese needs, alen will
low, inc easing he i m’s ec ui men and ain-
ing cos s and causing p oblems such as he in-
abili y o accumula e expe ience. The e o e,
in addi ion o complying wi h labo p o ec ion
and wel a e measu es s ipula ed in na ional
laws and egula ions, i ms should also espec
he igh s o employees.
In ecen yea s, co po a e social espon-
sibili y has g adually ecei ed in e na ional
a en ion, including non- inancial managemen
elemen s such as en i onmen al managemen ,
employee ca e, co po a e go e nance, supplie
managemen , and isk managemen in social
wel a e ac i i ies and co po a e ope a ions.
The e o e, Taiwan’s compe en au ho i ies is-
sued he “Co po a e Social Responsibili y Bes
P ac ice P inciples o Lis ed Fi ms” in 2022
o guide Taiwan’s lis ed i ms in p ac icing co -
po a e social esponsibili ies and implemen ing
hones ope a ions. In 2021, he compe en
au ho i y issued he “Taiwan S ock Exchange
Co po a ion Rules Go e ning he P epa a ion
and Filing o Sus ainabili y Repo s by Lis ed
Fi ms,” equi ing he ood indus y and ca e ing
e enue o accoun o mo e han 50% o hei
o al ope a ing e enue, he inancial sec o ,
and he chemical indus y. The “Sus ainable
De elopmen Bes P ac ice P inciples o Lis ed
Fi ms” was eleased in 2022 (Taiwan S ock Ex-
change, 2021, 2022a, 2022b).
Rega ding legal policy, Taiwan’s compe en
au ho i ies ha e s eng hened i ms’ s anda ds
o ca ing o employees’ igh s h ough co -
po a e sus ainable de elopmen measu es.
A p esen , mos legal policies a e based on so
law. The compe en au ho i ies belie e ha
i challenging, complex ules a e di ec ly ap-
plied o i ms, i may lead o he isk o in inging
on he i m’s eedom o ope a ion and causing
a ebound e ec on he i m. The e o e, in addi-
ion o egula ing manda o y disclosu e in some
indus ies, he cu en legal policy encou ages
egula ions o o he indus ies. Thus, he co -
po a e sus ainabili y epo discloses he i m’s
equal human esou ces s uc u e, employee
bene i s, ca ee de elopmen and aining,
occupa ional heal h and sa e y, occupa ional
sa e y sys em, o enhance he anspa ency
o employee ela ionship in o ma ion.
This pape sugges s ha i ms should
engage in highe -s anda d employee ca e
measu es and e en olun a ily inco po a e
employee igh s and wel a e measu es in o
he i m’s legal policies and guidelines. We be-
lie e ha i will ha e a syne gis ic posi i e im-
pac on he i m. On he one hand, he i m has
aken a olun a y a i ude and highe s anda ds
o o mula e i s ESG legal policy. On he o he
hand, i c ea es high us in he co po a e im-
age among all s akeholde s.
In e ms o managemen implica ions,
ESG policies and co po a e go e nance ha e
an impac on s eng hening employee igh s,
especially on employee u no e . We belie e
he i m has obus R&D echnology, inancial
capabili ies, and o he compe i i eness. S ill,
a b ain d ain c isis will a ec he i m’s com-
pe i i eness i i canno ake ca e o employee
igh s. The e o e, implemen ing ESG policies
will help make he i m mo e compe i i e,
gene a e mo e ope a ional syne gies, and
s eng hen employee cen ipe al o ce, in addi-
ion, ega ding he design o co po a e go e -
nance measu es, such as he size o he boa d
o di ec o s, he sha eholding a i ude o majo
sha eholde s, and he soundness o co po a e
go e nance. Managemen should no only con-
side he i m’s p o i ac o s bu also ca e abou
he igh s o employees. I also helps he i m
e ain alen s and ha e solid human esou ces.
De Lucia e al. (2020) a gue ha g owing
awa eness o clima e change and human capi-
al issues a e u ning i ms beyond adi ional
inancial gains. In pa icula , changes in global
socie y’s beha io owa ds sus ainabili y is-
sues and he a ailabili y o ESG indica o s
a ac in es o s o make socially esponsible
in es men decisions. In he pas , i ms only
paid a en ion o co po a e p o i s and seemed
o ca e li le abou employee u no e . The e-
o e, many i ms canno e ec i ely de elop
he alue o human esou ces. Lo and Liao
(2021) guide on s eng hening human esou ce
managemen , a he han sho - e m inancial
pe o mance, o help cen u y-old businesses
achie e sus ainable de elopmen . In Taiwan,
in ecen yea s, he public has been e y con-
ce ned abou he co po a e social esponsibili y
a i ude o he ood i ms. Due o he high mobil-
i y o human esou ces in he ood i ms, how
110 2024, olume 27, issue 1, pp. 108–120, DOI: 10.15240/ ul/001/2024-1-007
Business Adminis a ion and Managemen
o use he co po a e go e nance mechanism
o help he employee u no e is indeed an es-
sen ial pa o he ood i ms.
In pa icula , o ganiza ional go e nance
signi ican ly impac s co po a e managemen
policies. Howe e , in he pas , he li e a u e
has a ached g ea impo ance o he ela ion-
ship be ween business pe o mance and equi y
s uc u e. Singh e al. (2018) showed ha own-
e ship s uc u e signi ican ly impac s o ganiza-
ional pe o mance. Chiu e al. (2021) showed
ha u no e a e had a signi ican ly in e ed
U-cu e ela ionship wi h inno a ion and sug-
ges ed ha i ms should ind a balanced alue
o hei u no e a e o ge he highes e u n
on inno a ion. This pape ocuses on o ga-
niza ional go e nance and human esou ce
s abili y, explo ing he c i ical ac o s o human
esou ce s abili y in ood i ms. I u he ex-
plo es he nonlinea ela ionship be ween o -
ganiza ional go e nance and human esou ce
s abili y. G ossman (2010) examines he impac
o co po a e go e nance on o ganiza ional em-
ploymen s abili y and shows ha i ms whose
boa ds consis o a mo e signi ican p opo ion
o independen o ou side di ec o s ha e lowe
le els o o e all employmen s abili y. Ha sch
and Fes ing (2020) explain ha alen manage-
men di e s in e ms o size, age, s uc u e,
indus y, and owne ship. As a esul , hey
iden i ied di e en ypes o dynamic alen man-
agemen capabili ies p omo ing o ganiza ional
agili y o a ious ex en s.
The sea ch o a ela ionship be ween
ESG c i e ia and co po a e managemen
is mo e and mo e impo an . ESG is o g ea
signi icance o he de elopmen o ood i ms,
especially since he sha eholding s uc u e
o ood i ms aces many challenges because
he sha eholding s uc u e o he ood i ms may
ocus on he c ea ion o i m alue and e u n
o sha eholde s. Howe e , conside ing he im-
po ance o R&D inno a ion policies in ood
i ms, human esou ces a e an essen ial ac o
ha canno be igno ed.
Han and Kim (2021) ind ha i ms wi h high
employmen s abili y main ain signi ican cash
holdings o R&D in ensi e i ms and i ms wi h
high i m-speci ic human capi al. These esul s
a e consis en wi h a heo y p edic ing ha i ms
hold cash o indica e he c edibili y o hei em-
ploymen policies conce ning job secu i y. This
pape adop s he dynamic panel model me hod
o explo e he ela ionship be ween human
esou ces and o ganiza ional go e nance
in ood i ms om 2011 o 2021. I examines
he impac o human esou ces on R&D inno a-
ion policies. Ou indings sugges ha human
esou ce s abili y exhibi s a U-shaped ela ion-
ship wi h boa d o ganiza ion. Howe e , he e
is an in e ed U-shaped ela ionship be ween
he s eng h o human esou ces and he sha e-
holding o signi ican sha eholde s. In addi-
ion, he e is a nega i e ela ionship be ween
employee u no e and R&D inno a ion. Wang
and Yan (2022) show ha employee quali y has
posi i e ex e nali ies on u u e inancial pe o -
mance and i m alue. H azdil e al. (2021) ind
ha i ms s a egically engage in CSR p ac ices
o e ain employees. Do e (2005) in es iga es
he e o me s o co po a e go e nance in Japan
and Ge many; hei pu po has mo e a o ing
sha eholde s a he expense o employees.
Cho (2005) shows ha co po a e go e nance
p o ides an app op ia e s a ing poin o de-
eloping policies o build an e icien human
esou ce managemen sys em.
Abe (2002) ocuses on he in luence o co -
po a e go e nance s uc u es on employmen
adjus men in Japanese i ms and indica es
ha co po a e go e nance s uc u es a ec em-
ploymen adjus men , especially he p esence
o la ge s ockholde s slows down he speed
o employmen adjus men . Chen and Kao
(2022) showed ha i ms wi h mo e women di-
ec o s end o implemen less downsizing and
such a alen - e aining s a egy bene i s i m
pe o mance. Abe and Shimizu ani (2007) ex-
amine how boa d owne ship s uc u es educe
labo cos s when i ms ace excess employmen
and ind ha ou side di ec o s a e mo e inclined
o implemen layo s o ea ly e i emen . Mu h-
usamy e al. (2011) a gue he ole employees
a e supposed o play in i m go e nance and
employee pa icipa ion in co po a e decision-
making augmen s i m pe o mance and limi s
co po a e excesses.
C ouche and Miles (2010) ques ion whe h-
e cu en co po a e go e nance ini ia i es a e
adequa e o p omo e employee in e es s and
conclude ha mo e s ingen egula ion is e-
qui ed o i m go e nance. Be nacchio (2015)
conside s employee p og ams o be a means
o implemen ing a p ac ice-based co po a e
go e nance model. Villie s (2021) highligh s
ha co po a e go e nance has a ole in ensu -
ing wo ke s’ needs a e me ; he e is ension
be ween he goals o any e o ms in co po a e
111
2024, olume 27, issue 1, pp. 108–120, DOI: 10.15240/ ul/001/2024-1-007
Business Adminis a ion and Managemen
go e nance and wo ke . The a icle exam-
ines he changes in owne ship and co po a e
go e nance ha ha e a ec ed indus ial ela-
ions sys ems and indings ha ins i u ional
no-s abili y in indus ial ela ions. Robe s and
an den S een (2001) discuss ha he a ac-
i eness o sha eholde -domina ed go e nance
depends on he ex en o which wo ke s’ in-
e es s a e p o ec ed by ou side employmen
op ions. Michie and Ough on (2002) a gue
ha he de elopmen o co po a e go e nance
and legal s uc u es acili a es he combina ion
o employee owne ship. The a icle o Koc-
mano á and Šimbe o á (2014) con ibu es
o he e o o ESG o measu e co po a e
sus ainabili y. Campbell e al.’s (2012) indings
show manage s should ocus on ailo ing com-
pensa ion packages o help high-pe o ming
indi iduals in knowledge-in ensi e se ings.
We ne e al. (2005) show ha he e
is signi ican pay sensi i i y be ween employ-
ees wi h he owne ship s uc u es. John and
Senbe (1998) a gue ha he independence
o he membe s o he boa d size de e mines
he e ec i eness o he boa d o di ec o s.
Fama and Jensen (1983) poin ed ou ha
he boa d o di ec o s is no only an impo an
i m’s manage ial mechanism, bu he boa d
will also a ec he i m’s e ec i eness in e ms
o R&D inno a ion. Han and Kim (2020) ind
ha employmen s abili y is posi i ely co ela ed
wi h inno a ion ou pu , and he indings sugges
ha employmen s abili y enhances employee
incen i es o inno a e by p o iding ole ance
o ailu e. Based on a job demand- esou ce
model, Mon ani e al. (2020) a gue ha his indi-
ec ela ionship exhibi s an in e ed U-shaped
pa e n, whe e mode a e wo kloads a e mos
likely o bene i inno a i e beha io s. The e-
la ed li e a u e o his pape is lis ed in Tab. 1.
This pape o ganizes ele an li e a u e
in Tab. 1. F om he li e a u e, we so ou
he co e discussion aspec s, including inancial
policy, owne ship o co po a e go e nance, and
R&D inno a ion. We expec ed he possible im-
pac on employee u no e by discussing hese
aspec s in he pas li e a u e.
1. Theo e ical backg ound
This pape builds on he co po a e go e nance
o owne ship, R&D inno a ion, and i m cha ac-
e is ics. F om he pe spec i e o co po a e go-
e nance mechanisms and employee u no e ,
we discuss he con o e sies ha a e di e en
om he p e ious li e a u e. The a icle d aws
on deba es on in e ed U-shaped ela ionships,
boa d size, and employee u no e . The pape
ex ends he co po a e go e nance li e a u e
o conside he go e nance e ec s o employee
u no e , incen i es, and owne ship. As a e-
sul , we can o mula e he esea ch hypo heses:
H1: ESG policies ocus on employee wel a e
measu es, his pape belie es ha high-le el
employee wel a e measu es can help educe
employee u no e .
H2: F om he pe spec i e ha he cen al
decision-make s o co po a e go e nance
measu es a e boa d membe s, his pape
Li e a u e (au ho ) Poin o iew Empi ical esul s Expec ed esul s
o he pape
(Lo & Liao, 2021) Financial − +/−
(Tabassum & Ba sakis, 2018) Owne ship s uc u e + +
(Chiu e al., 2021) Inno a ion +/− +/−
(G ossman, 2010) Owne ship s uc u e + +/−
(Ha sch & Fes ing, 2020) Owne ship s uc u e +/− +/−
(Han & Kim, 2021) Cash holdings + +
(Han & Kim, 2020) Inno a ion + +
(Mon ani e al., 2020) Inno a ion +/− +
No e: This pape was compiled wi h e e ence o he abo e-men ioned li e a u e.
Sou ce: own
Tab. 1: Re iew o he o ganiza ional go e nance and he human esou ces
112 2024, olume 27, issue 1, pp. 108–120, DOI: 10.15240/ ul/001/2024-1-007
Business Adminis a ion and Managemen
belie es ha changes in boa d size will a ec
employee u no e .
H3: F om he pe spec i e o co po a e
go e nance, which mainly egula es he sha e-
holding objec s o majo sha eholde s, his
pape belie es ha changes in he sha ehold-
ings o majo sha eholde s will a ec changes
in employee u no e .
H4: F om he pe spec i e o changes
in business scale, his pape explo es he phe-
nomenon o di e en employee u no e in i ms
o di e en sizes.
H5: The i m’s in es men in R&D and in-
no a ion helps educe employee u no e .
H6: F om he pe spec i e o i m inancial
measu es, his pape belie es ha s able inan-
cial capabili ies will inhibi employee u no e .
2. Resea ch me hodology
In Tab. 2, we in oduce he ypes o esea ch
sample i ms. In e ms o sample selec ion, his
pape mainly conside s Taiwan’s ESG policy,
which a aches g ea impo ance o he ood in-
dus y ela ed o ood sa e y issues. The e o e,
we chose lis ed i ms o esea ch samples.
Secondly, he o iginal sample scope o his
pape included 28 ood i ms, bu conside -
ing he comple eness o he da a, we inally
Sequence Company name Type o company Founding da e
1Wei Chuan Foods Co po a ion Lis ed i m 1953/9/22
2Ve Wong Co po a ion Lis ed i m 1959/7/4
3G ea Wall En e p ise Co., L d. Lis ed i m 1960/12/28
4Oceanic Be e ages Co., Inc. Lis ed i m 1965/7/24
5Cha oen Pokphand En e p ise (Taiwan) Co. Lis ed i m 1977/8/22
6Uni-P esiden En e p ises Co p. Lis ed i m 1967/8/25
7AGV P oduc s Co p. Lis ed i m 1971/6/26
8Taisun En e p ise Co., L d. Lis ed i m 1960/10/21
9Fwusow Indus y Co., L d. Lis ed i m 1955/2/7
10 Tai oun P oduc s Co., L d. Lis ed i m 1969/3/13
11 Fo mosa Oilseed P ocessing Co., L d. Lis ed i m 1986/4/18
12 S anda d Foods Co po a ion Lis ed i m 1986/6/6
13 Lien Hwa Indus ial Holding Co p. Lis ed i m 1955/7/20
14 Lian Hwa Foods Co p. Lis ed i m 1970/7/7
15 TTET Union Co p. Lis ed i m 1982/5/24
16 Ten Ren Tea Co., L d. Lis ed i m 1975/12/11
17 Hey-Song Co p. Lis ed i m 1969/12/13
18 Shin Tai Indus y Co., L d. Lis ed i m 1972/11/15
19 Hunya Foods Co., L d. Lis ed i m 1976/6/14
20 Sunjuice Holdings Co., Limi ed Lis ed i m 2010/1/12
21 Kee Song Bio-Technology Holdings Limi ed Lis ed i m 2010/5/11
22 Tehmag Foods Co po a ion Lis ed i m 1989/6/29
23 Namchow Holdings Co., L d. Lis ed i m 1950/6/30
24 Taiyen Bio ech Co., L d. Lis ed i m 1995/7/1
25 Chung Hwa Food Indus ial Co., L d. Lis ed i m 1980/5/8
Tab. 2: Sample i m in oduc ion – Pa 1

113
2024, olume 27, issue 1, pp. 108–120, DOI: 10.15240/ ul/001/2024-1-007
Business Adminis a ion and Managemen
had 28 ood i ms as he esea ch sample
o his pape .
The model ollows Fama and Jensen (1983)
and Chiu and Fonda (2021) and uses he panel
da a model o es ima e he deg ee o ela-
ionship be ween o ganiza ional go e nance
and employee u no e du ing he decade
2011–2021 pe iod as ollows:
HRi = β1i R&Di + β2i FPi + β3i BZi +
+ β4i MSi + β5i EBi + β6i BSi + εi
(1)
As o employee u no e (HRi ), we use
independen a iables, including i m esea ch
(R&Di ), ee cash low a io (FPi ), boa d size
(BZi ), majo sha eholde holdings (MSi ), he
employee bene i s (EBi ), and i m asse (BSi ).
In o de o in es iga e o ganiza ional go e -
nance and he employee u no e , his pape
elabo a es on he log equa ion as ollows.
Fu he , we use a quan i a i e eg ession
model, and u he p edic he end o he da a
dis ibu ion:
(2)
Koenke and Basse (1978) p opose he
analy ical me hod o quan i a i e eg ession,
and he concep o componen eg ession is
de i ed om he leas absolu e de ia ion. This
pape no es ha i he obse ed alue βxi is less
han he es ima ed alue yi, hen he weigh
is 1 − α. Thus, we ob ain a ec o o a se
o pa ame e s β o ob ain he minimum alue
o he weigh ed sum o he absolu e alues
o he e o e ms. The α is he size o he com-
ponen , and i s alue is be ween 0 and 1
(0 < α < 1). I α is 0.5, hen he componen
eg ession is he median eg ession.
3. Resea ch esul s
Tab. 3 epo s he desc ip i e s a is ics o he
i m human esou ce mobili y and R&D inno-
a ion policy. The deg ee o human esou ce
mobili y is be ween 0.000% and 92.860%,
indica ing a signi ican di e ence in human e-
sou ce mobili y.
The R&D inno a ion policy anges om
0.000% o 32.270%, e ealing he massi e di -
e ence in he deg ee o R&D inno a ion among
i ms. Boa d sizes ange om 6 o 18 people,
which means ha i ms ha e di e en le els
o boa d size and should place a ious le els
o emphasis on human esou ces.
In he pas , mos discussions on he u n-
o e a e ocused on he ele ance o human
esou ces condi ions. Howe e , when he gen-
e a ion o ESG emphasis has a i ed, i is neces-
sa y o e hink he ela ionship wi h he u no e
a e om he pe spec i e o ESG. ESG is no
only abou he i m’s ope a ing pe o mance bu
also abou using he spi i o ESG o change
he i m’s o e all co po a e cul u e and con ib-
u e o i s sus ainable de elopmen . In pa icula ,
i is obse ed h ough his pape ha he u n-
o e a e o he ood indus y a ies g ea ly
among i ms. Fi s o all, his pape conside s
ha he ood indus y’s u no e a e is 0.000%
and 92.860%. I is belie ed ha he equi y
s uc u e and he deg ee o R&D inno a ion
may a ec he i m’s u no e a e.
Secondly, why he u no e a e needs o be
e-discussed because human esou ces ha e
a signi ican impac on adi ional indus ies, bu
i seems ha i is no enough o explo e he scope
o he discussion only om he ex e nal ac-
o s. Co po a e go e nance s uc u e impac s
he i m’s ope a ions signi ican ly. The e o e,
om he pe spec i e o he di e en cha ac e -
is ics o he owne ship s uc u e, o example,
he size o he boa d o di ec o s in he ood
indus y anges om 6 o 18 boa d membe s,
cap u ing he ac o s ha a ec u no e will
Sequence Company name Type o company Founding da e
26 Taiwan F uc ose Co., L d. Lis ed i m 1984/7/25
27 Fo g Inno a ion Co., L d. Lis ed i m 1990/10/16
28 GeneFe m Bio echnology Co., L d. Lis ed i m 1999/07/17
Sou ce: own (compiled wi h e e ence o he websi es o a ious companies)
Tab. 2: Sample i m in oduc ion – Pa 2
114 2024, olume 27, issue 1, pp. 108–120, DOI: 10.15240/ ul/001/2024-1-007
Business Adminis a ion and Managemen
help he indus y hink abou he op imal design
o he owne ship s uc u e.
Finally, he deg ee o R&D inno a ion has
become a c i ical ac o in he de elopmen
o i ms. S ill, many i ms ha e ealized ha
in addi ion o he deg ee o R&D inno a ion,
how o shape long- e m human esou ces may
be a mo e c i ical ac o o discussion. Because
o ha ing long- e m human esou ces. Ad an-
ages a e also e lec ed in he sus ainable
de elopmen o R&D and inno a ion.
3.1 Panel eg ession model
This pape has examined employee u no e
and he deg ee o o ganiza ional go e nance
e ec by a panel o 28 Taiwanese ood i ms
o e he pe iod 2011–2021. Ou cen al es i-
ma es ely on da a om TEJ sou ces (Taiwan
Economic Jou nal (TEJ) da abase). We ap-
ply he panel eg ession model and p esen
he esul s in Tabs. 2–3 o compa e he es-
ima es o he pooled model by OLS, aking
in o accoun boa d size and signi ican sha e-
holde s’ sha eholding as wo o ganiza ional
go e nance indica o s.
I can be seen om Tab. 4 ha he boa d
size (−3.563) and he squa e e m o he
boa d size a e signi ican ly co ela ed wi h
employee u no e (0.166). This means ha
he pa icipa ion o he boa d size con ibu es
o he s abili y o he i m’s human esou ces.
The employee u no e has a U-shaped e-
la ionship wi h he boa d o di ec o s, which
shows ha a conside able boa d size will a ec
employee u no e . In addi ion, inancial s abil-
i y (−0.016), he deg ee o R&D inno a ion
(−1.024), and employee wel a e (−0.371) ha e
a “–” ela ionship wi h he s eng h o human
esou ces. The e o e, i shows ha he i m’s
inancial s abili y, he deg ee o R&D inno a-
ion, and employee wel a e measu es will a ec
he de elopmen o human esou ces.
The scale de elopmen o he boa d o di-
ec o s has a - eaching signi icance in ha i
has a ec ed he g ow h and s abili y o human
esou ces. This pape ound ha he size
o he boa d o di ec o s has a U-shaped ela-
ionship wi h he u no e a e, indica ing ha
he expansion o he boa d o di ec o s has
a signi ican posi i e ela ionship wi h human
esou ces, which means ha he de elopmen
o he boa d o di ec o s is no jus an inc ease
in he numbe o boa d membe s, bu mo e
impo an ly, i has a mo e signi ican impac
on human esou ces. The e o e, his pape e-
minds us ha he scale de elopmen and di e -
si y o he boa d o di ec o s will ha e a ce ain
deg ee o in luence on human esou ces wi h
emphasis on a i ude, no ma e o he i m’s
de elopmen s a egy, human esou ces
de elopmen , soundness o he i m’s ope a ing
sys em, e c., so he s abili y o human esou c-
es will be di e en quali a i ely due o he ac-
o s o he owne ship s uc u e. In o he wo ds,
he u u e de elopmen o he boa d o di ec o s
in he e i o y should no only ocus on he busi-
ness ope a ion bu also he co e in luencing ac-
o o d i e high-quali y human esou ces.
The impac o he size o he boa d o di ec-
o s on di e en deg ees o human esou ces
has been, acco ding o he au ho s’ belie ,
a ely discussed in he li e a u e. S ill, i s im-
po ance dese es o be add essed, especially
when he size o he boa d o di ec o s is only
S d. de . Min Max
Employee u no e (HRi )11.757 0.000 92.860
Fi m esea ch (R&Di )2.701 0.000 32.270
F ee cash low a io (FPi )72.614 −715.040 571.420
Boa d size (BZi )2.244 6.000 18.000
Majo sha eholde holdings (MSi )15.304 5.960 86.080
Employee bene i s (EBi )23.635 2.270 255.480
Fi m asse (BSi )1.446 11.998 20.057
Sou ce: own (based on Taiwan Economic Jou nal (TEJ) da abase; 2019)
Tab. 3: Summa y s a is ics o human esou ces and o ganiza ional go e nance
115
2024, olume 27, issue 1, pp. 108–120, DOI: 10.15240/ ul/001/2024-1-007
Business Adminis a ion and Managemen
in a small-scale ype. The boa d o di ec o
membe s may only pay a en ion o business
pe o mance issues bu do no pay a en-
ion o he impo ance o human esou ces.
The e o e, membe s o he boa d o di ec-
o s will no highly p o essionally concei e
he u u e de elopmen o human esou ces,
and i is mo e likely ha he size o he boa d
o di ec o s will s ay in a small-scale ype,
losing he impo ance. When boa d mem-
be s hink wi h sel -in e es as he co e and
do no expec o expand he boa d’s scope,
he possibili y o a ec ing human esou ces
will be eno mous.
I can be seen om Tab. 5 ha he majo
sha eholde s’ holding (0.360) and he squa e
e m o he majo sha eholde s’ holding a e
signi ican ly co ela ed wi h employee u no e
(−0.006). This means ha he majo i y sha e-
holde ’s holding con ibu es o he i m’s human
esou ces s abili y. The s eng h o human
esou ces has an in e ed U-shaped ela ion-
ship wi h he majo sha eholde holdings, which
shows ha expanding he majo sha eholde
holdings will con ibu e o employee u no e .
Majo sha eholde s’ holding a ec s em-
ployee u no e , and signi ican sha eholde s’
holding a aches g ea impo ance o human
esou ces, con ibu ing o he long- e m s a-
bili y o human esou ces. The e o e, majo
sha eholde s can implemen ESG policies and
a ach impo ance o human asse s, enhancing
i ms’ sus ainable de elopmen .
This pape ound ha he manage ’s
sha eholding a io has an in e ed U-shaped
ela ionship wi h he u no e a e. On he one
hand, i conside s he i m’s p o essional
managemen ; on he o he hand, i pays a -
en ion o he long- e m human esou ces
de elopmen . This pape belie es ha he ex-
pansion o he manage ’s sha eholding a ec s
he u no e a e because he manage ’s op-
e a ion managemen has al eady had a quali a-
i e change. When he manage ’s sha eholding
a io is oo la ge due o he ela ionship
o pe sonal in e es s, he manage ocuses
Coe icien (s anda d e o s) p- alue
Cons 58.841*** 0.000
(14.740)
Fi m esea ch (R&Di )−1.024*** 0.004
(0.358)
F ee cash low a io (FPi )−0.016** 0.046
(0.007)
Boa d size (BZi )−3.563** 0.028
(1.614)
Boa d size (BZi )20.166** 0.024
(0.073)
Employee bene i s (EBi )−0.371*** 0.008
(0.138)
Fi m asse (BSi )−1.371*** 0.009
(0.526)
No e: Dependen a iable: employee u no e (HRi ); *** and **indica e signi icance a he 0.01 and 0.05 le els, espec-
i ely; da a in b acke s a e s anda d e o s.
Sou ce: own (based on Taiwan Economic Jou nal (TEJ) da abase; 2021)
Tab. 4: Resul s o pa ame e es ima ion o boa d size o POLS models
116 2024, olume 27, issue 1, pp. 108–120, DOI: 10.15240/ ul/001/2024-1-007
Business Adminis a ion and Managemen
on he i m’s p o i mo e han he s abili y o hu-
man esou ces and e en in es s in long- e m
human esou ce de elopmen wi hou planning.
The e o e, he manage ’s sha eholding will be
an obse a ion indica o ; u he hinking abou
how o ha e app op ia e manage s holding
sha es belonging o he i m’s owne should be
concei ed o as signi ican issues.
3.2 Panel quan ile eg ession model
The empi ical esul s o he panel quan ile
eg ession model (Tab. 6) showed ha i ms
wi h high employee u no e in he ood i ms
had a signi ican “−” co ela ion wi h inancial
s abili y (−0.029), he boa d size (−1.130), and
employee bene i s (−0.683). Implici ly, hese
ac o s in luence high employee u no e .
Fo he ood i ms o e ec i ely educe
high employee u no e , ac o s such as inan-
cial soundness, boa d size, and employee ben-
e i s should be s eng hened. Businesses a e
cha ac e ized by low employee u no e and
a e also e y impo an o inancial s abili y,
boa d size, and employee bene i s. The e o e,
when a i m aces he p oblem o high employ-
ee u no e , i should examine i s managemen
mechanism om he abo e poin o iew.
Th ough he e ec o i m scale, his pape
inds ha di e en scale e ec s impac human
esou ces di e en ly. Small-scale i ms ha e
a signi ican posi i e ela ionship wi h he u n-
o e a e. Howe e , a nega i e co ela ion ex-
is s be ween i m size and employee u no e ,
indica ing ha di e en i m sizes a ec em-
ployee mobili y. La ge-scale i ms pay a en ion
o he a i ude o human esou ce de elopmen
and ha e sys em and planning capabili ies
compa ed wi h small-scale i ms.
F om he e ec o scale, his pape ound
ha inancial soundness impac s human e-
sou ce de elopmen , indica ing ha employees
a ach impo ance o co po a e inancial capabili-
ies. Whe he a small-scale o la ge-scale i m,
he employee u no e a e is consis en wi h
he e ec o inancial soundness indica o s.
Secondly, his pape ound ha he size
o he boa d o di ec o s o la ge i ms has a sig-
ni ican in e se ela ionship wi h he u no e a e,
indica ing ha he boa d o di ec o s o la ge i ms
is commi ed o human esou ce de elopmen ,
and he size o he boa d o di ec o s a ec s
Coe icien (s anda d e o s) p- alue
Cons 33.773*** 0.007
(12.542)
Fi m esea ch (R&Di )−1.042*** 0.005
(0.371)
F ee cash low a io (FPi )−0.016** 0.037
(0.007)
Boa d size (BZi )0.360** 0.035
(0.169)
Boa d size (BZi )2−0.006** 0.010
(0.002)
Employee bene i s (EBi )−0.437*** 0.002
(0.138)
Fi m asse (BSi )−1.660*** 0.002
(0.529)
No e: Dependen a iable: employee u no e (HRi ); *** and ** indica e signi icance a he 0.01 and 0.05 le els, espec-
i ely; da a in b acke s a e s anda d e o s.
Sou ce: own (based on Taiwan Economic Jou nal (TEJ) da abase; 2021)
Tab. 5: Resul s o pa ame e es ima ion o majo sha eholde holdings o
POLS models