A Study Of Equity Structure And Firm Value Of Listed Companies

Equity structure decides how the resident rights of benefits and control divided among the investors, different equity structure shows that the benefits and rights are scatted among different investors, it will lead to different corporate governance and different firm value, so it is really related with firm value. At the same time, other factors include the outside environment of the firm and the firm itself also gives important effect on firm value. This paper examine the relation between firm value (market-book ratio) and equity structure based on a sample of 33 listed companies in information technology industry, the results show that there is no significant relation between firm value and equity structure. The author explains the result and suggests we should improve equity structure and other factors to raise firm value.