Journal of Economics and Management Volume 22, No. 1 March, 2026

The Impact of Corporate Governance on Company Performance - Using Electronic Voting System as Mediator

Yi-Hua Lin

Department of Business Administration, Southern Taiwan University of Science and Technology, Taiwan

Tsung-Yu Hsieh

Department of Risk Management and Wealth Planning, Takming University of Science and Technology, Taiwan

Tze Zhion Yong

Department of Accounting Information, Southern Taiwan University of Science and Technology, Taiwan

Abstract

In the past, participation in shareholders' meetings was limited to in-person attendance and proxy voting. However, with electronic voting, foreign investors and shareholders holding shares in multiple companies can participate in shareholders' meetings online, allowing shareholders to vote without time and place restrictions. The Financial Supervisory Commission R.O.C (Taiwan) also promotes various initiatives, such as implementing an independent director system, audit committee setup, board nomination system, electronic voting, and other measures to strengthen corporate supervision and improve corporate governance and shareholder activism. Electronic voting in shareholders' meetings may increase meeting attendance. Due to increased participation, companies require more credible professional institutions. Corporate governance is considered an important factor in improving economic effects and enhancing enterprise competitiveness. Additionally, shareholders' meetings involving director and supervisor re-elections tend to have higher attendance rates. Previous literature has indicated that companies with good corporate governance demonstrate better business performance. This study investigates the impact of corporate governance on operating performance after the implementation of electronic voting from 2014 to 2018 in companies that were required to implement electronic voting and re-elected directors and supervisors in the current year. The results show that corporate governance quality can improve company operating performance through the implementation of an electronic voting system.

Keywords：Corporate Governance, Electronic Voting, Operating Performance, Shareholder Activism

JEL Classifications：G14, G15

BACK