Effects of Stocks Liquidity and Supervisors Monitoring on Firm Value

• Main Authors: Ying-Fong Lin, 林盈夆
• Other Authors: Yih-Bey Lin
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/50605885484534915293

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 100 === This paper explores the effects of stocks liquidity and supervisors monitoring on firm value. The stock returns of firms world be affected. When the increase in thestock liquidity, the stock returns would be affected, thereby affecting the firm value. In addition, the directors and supervisors enhance the value of the company or its own interests by the supervision and management of the company. Most of the previousreferences have to study for single point of view, but we think, the joint correlation between stocks liquidity and supervisors monitoring exists for the value of firms. Therefore, we add two factors of stocks liquidity and supervisors monitoring at some time to explore the effects on firms value together. Due to time series Analysis and cross sectional analysis can not test alone and to track long-term effects of the causal relationship between the variables, we use panel data to test the correlation between stocks liquidity, supervisors monitoring and the value of firms. the following results are obtained: stocks liquidity the higher, the supervisors monitoring stronger. When market depth the better, the stock return ratios higher. In addition, when increase in number of directors control, the degree of the supervisors monitoring would be improved, Thus making the rise of the stock return ratios. Key words: stocks liquidity, supervisors monitoring, firm value, panel data