Corporate governance and market valuation of capital and R&D investments

• Main Authors: Shih-lung Jang, 張世龍
• Other Authors: Keng-sen Cheng
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/47214409385055168126

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 92 === This paper adopt the method developed by Kee H. Chung, Peter Wright and Ben kedia(2003) to examine how corporate governance structure affects market valuation of capital and R&D investment for Taiwan’s electronic industry in 2002. We employ three empirical proxies of corporate governance-news following, independent outside director, and institutional holdings, and research whether market value of corporate investment varies with governance structure. We find that the higher news following, the higher proportion of independent outside director and the higher proportion of institutional holdings is positively related to corporate performance. In addition, our results also show that the market valuation of the corporate capital and R&D investment depends critically on news following and institutional holdings, but not independent outside director.