Research On Relevance Between Equity Value And Corporate Governance

In the twenty-first century, the enthusiasm of the corporate governance issues ismore intense than ever. Corporate governance has truly become the focus of attentionof the capital market. Deepen and quantitative research of corporate governance willhelp companies optimize their governance structure, support authorities to developcorporate governance guidelines. Ohlson(1995) valuation model is the bridge betweenthe firm value and accounting variables, which is also the research focus ofcontemporary academia. The measure of non-financial information v is graduallyaroused the attention of researchers. Using Ohlson(1995) valuation model, this paperfocuses on the interpretation model non-financial information v,presents thatcorporate governance can be included in the valuation model of Olson(1995) as otherinformation. Corporate governance information is the promotion to complement thevaluation model and research company value.In order to research on value relevance of corporate governance, Ohlson(1995)valuation model is used to analyze a sample of listed companies, which make theresearch no longer limited to the financial statements. Studies shows that corporategovernance factors can explain the equity value in a great scale, ownershipconcentration, managerial ownership, the scale of management and supervision,frequency of meetings and board of directors and shareholders’ remuneration andother factors have great influence on corporation market value. The ration of largestshareholder of the number of shares to the second, the largest proportion ofshareholding, the number of independent directors and the board of supervisors scaleare negative correlated to corporate value. The scale of top ten shareholders, theproportion of tradable shares, the frequency of meetings, board size and the number ofexecutives are correlated to corporate value. The associated with the degree of the topten shareholders, relevance of the remuneration of directors and supervisors andmanagement ownership of the top ten shareholders, the compensation of directors andsupervisors and managerial ownership are not significant effect on corporate value.