The Relationship between Corporate Governance, Firm Value and Firm Financial Performance

• Main Authors: Pei-Hsun Chen, 陳沛旬
• Other Authors: Ta-Cheng Chang
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/02523754053046701433

碩士 === 東吳大學 === 國際經營與貿易學系 === 102 === This paper examines the impact of corporate governance on Taiwan listed companies’ firm value and firm financial performance. Reviewing the past literature, the more only examined the relationship between the single corporate governance variable or dimension and firm performance. In fact, corporate governance includes many dimensions. In the other hand, some literatures pointed out that commercial ratings provided by corporate governance rating firms may contain a lot of measurement error. Because of above reasons, we construct a more valid and complete corporate governance index for managers and investors’ decision-making. According to valid test and regression analysis, we find a significantly positive relationship between corporate governance index, firm value and performance in every market conditions. Additionally, we separate the corporate governance index into six dimensions for research. The conclusion is that mangers could enhance the ownership structure, the equitable treatment of shareholders and the board structure for increasing firm value and performance.