The main purpose of this study is to discuss whether corporate governance features variables have influence on equity value by using listed electronic companies in OTC as samples. We propose six hypotheses to test and our empirical result shows that among independent variables, two variables have significant influence: holding share ratio of directors and supervisors is negatively significantly correlated with equity value, which is not in support of hypothesis 1. The holding share ratio of first and second stockholders is positively significantly correlated with equity value, which is in support of hypothesis 4.1. In addition, this paper applies the increasing amount explanatory capability analysis and finds that after adding these corporate goverance indicators, adj R^ of the valuation model with corpoate governance variables is up to 56.6% to 51%. The findings implies that corporate governance variables have better explanatory power of equity value.Also,we can improve validity of the Ohison (1995) equity valuation model.
關聯:
The International journal of finance vol. 21, no. 1 pp.5097-6016
