Corporate Governance and Value-relevance of Accounting Information
Date Issued
2009
Date
2009
Author(s)
Huang, Shih-Han
Abstract
This study seeks to examine the relationship between corporate governance and the value-relevance of accounting information. This study uses internal ownership structure, board of directors and external mechanism related variables to proxy for corporate governance. Value-relevance is measured by the adjusted R2 derived from a regression of stock price on earning and book values which is based on Ohlson’s accounting-based valuation model. Regression results are as follows：(1) Stronger corporate governance structure exhibits higher value-relevance of accounting information. Firm-specific factors are also related to the value-relevance of accounting information. (2) There is a negative association between the deviation of control right from cash flow right of the controlling shareholders and value-relevance of equity book values. (3) There is a positive relation between board composition, proxied by board size and board independence, and value-relevance of earning. (4) External mechanism has positive effects on both the value-relevance of equity book values and earning. eyword: corporate governance, value-relevance of accounting information, board of directors, ownership structure
Subjects
corporate governance
board of directors
value-relevance of accounting information
ownership structure
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ntu-98-R96722031-1.pdf
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