The Valuation Relevance of Environmental Effects and Corporate Governance on Firm Value

• Main Authors: Chung, Chia-Jung, 鍾佳蓉
• Other Authors: Ko, Chiung-Feng
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/45738598397286249076

碩士 === 東吳大學 === 會計學系 === 103 === The issues of industrial pollution seems set to occurred for recent years in succession, has shocked the community and affected industrial development policy. Companies are no longer just focus on the industry technology, but also need to focus on environmental protection. Companies should regard environmental protection requirements as part of the production. Governments are starting to develop regulations to reduce pollution events. The purpose of this paper is to investigate whether corporate governance systems can be elaborated in environmental protection, and then further enhance firm value. This study applies Ohlson’s（1995）valuation model to examine the relationship between market value, the mandated disclosures on environmental penalty and corporate governance. The evidences of this study show that: (1) the interaction effect of environmental penalty and corporate governance conducts that stock price dropped significantly when environmental penalty is revealed. (2) Companies with better governance systems could decrease the amount of penalty for environmental pollution. (3) EPS and book value per share show significantly effects on stock price. Finally, this study suggests that environmental penalty database should open to public； the level of pollution industries can develop different level； the amount of penalty should increase more for recidivism, and the information for environmental capital expenditure should disclose yearly.