| Summary: | 碩士 === 國立中央大學 === 財務金融研究所 === 98 === In this study, we try to incorporate the corporate governance quality of the firm to study the improvement of financial constraints of the firm following the stock market liberalization. By using the data of totally 488 firms from Korea, Malaysia, Taiwan and Thailand, we find that firms commonly face the financial constraint situation before the stock market liberalization. Further, to incorporate the issue of corporate governance into this study, we use the “major shareholder ratio” as the measure for corporate governance quality. We find that, firms with a higher ownership concentration level experience greater release for its financial constraint following the stock market liberalization. It seems to be a reasonable result because a higher ownership concentration ratio of the firm can prevent the agency problem itself. Hence following the stock market liberalization, a better operating performance of the firm is expected by investors and this firm can benefit more due to the cheaper financing costs in the stock market.
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