Determinants of the impact of ESG policy and corporate governance on employee rights

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