Fundamental Data

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According to the latest data compiled from 2023 annual reports of Taiwan's listed companies by TEJ Group Observer, the total asset size of Taiwan's top 100 business groups continues to grow, albeit at a significantly slower pace compared to previous years, with an annual increase of only 3%. Under the influence of the global economic downturn, the revenue and profit figures of these top 100 groups have shown a significant decline compared to 2022, with revenue falling by 7.9% and operating profit plunging by 25%.

In the stock market, the shareholding ratio of directors has always been a key indicator for investors. Changes in insider holdings often signal their confidence in the company’s future development and have potential impacts on stock prices. However, identifying meaningful changes in shareholding ratios from vast data can be challenging for investors.

To strengthen the duties of boards and enhance the sustainable value of enterprises, TWSE and TSE amended the “Corporate Governance Best Practice Principles for Listed and OTC Companies”. Starting from 2024, the new framework mandates that at least a third of the board seats in listed and OTC companies must be held by independent directors, with a maximum of three consecutive terms. By 2027, this requirement will be applied to all listed and OTC companies.

In corporate governance and corporate operations, the proportion of shares held by directors and supervisors (Directors' Holdings) is considered an important indicator that not only reflects the confidence of the company's management in the future development of the company but may also affect investors' expectations of the company's future performance. In Taiwan, the level of Directors' Holdings has long been a focus of market participants' attention because it involves the adjustment of interests within the company, the distribution of control, and the trust of external investors. However, effectively interpreting and utilizing such information may be a significant challenge for the average investor. TEJ Taiwan Economic News will introduce Directors' Holdings in detail, explain their impact on a company, and how to find relevant shareholding information through various channels. This will help readers better understand the meaning of Directors' Holdings and use it as an important basis for corporate analyses.

In recent years, as the stock prices of popular AI companies continue to reach new highs, investors are increasingly focused not only on these companies' operational status but also on the trading behavior of their insiders. Company insiders have more information compared to external investors, giving them an informational advantage when trading the company's stock.