The Influence of Capital Structure on Organizational Performance at Taiwan-Listed Info-Electronics Companies: Using Corporate Governance as the Moderator

Abstract

The purpose of this study is to verify the influence of capital structure on organizational performance at Taiwan-listed info-electronics companies, with corporate governance being the Moderator. Financial section chiefs or employees of higher levels at Taiwan-listed info-electronics companies were interviewed, while convenience sampling was used to yield knowledge from the population, the linear Structural Equation Modeling (SEM) was adopted to verify the goodness-of-fit effects among the overall model, structural model and measurement model. Findings from this study show that, at Taiwan-listed info-electronics companies, the capital structure and corporate governance both have significant interactive influence on the organizational performance. This implies Taiwan-listed-electronics companies should emphasize corporate governance just as also enhancement in capital structure.