A Study of Relationship between Shareholding of the Management and Market Value of the Company

• Main Authors: Pei-Lin Chung, 鍾佩玲
• Other Authors: 吳如萍
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/20995664446489914703

碩士 === 樹德科技大學 === 金融系碩士班 === 103 === This paper discusses the relationship between the management’s shareholding structure of the listed companies in Taiwan and the market value reflected by the evaluation of those companies rendered by market investors from 2004 to 2013. It adopts four market evaluation indices, namely Tobin’s Q, Proxy Q, Peers and earning per share (EPS), to measure the companies’ market value and uses regression analysis to examine the results. The results suggest that among the directors’ and supervisors’ total shareholding ratios, the controlling shareholders’ total shareholding ratios, the independent directors and supervisors (IDS) and the performance groups, the stock return rates exceeding the median is positively correlated to the four dependent variables of market-value evaluation. Major shareholders’ total shareholding ratios have a positive effect on Tobin’s Q and Proxy Q, but a significantly negative effect on Peers and EPS. For the foreign invested director’s and supervisors’ ratios, they are significantly and negatively correlated to Peers. Thus, among the management’s shareholding structure of the listed companies in Taiwan, factors such as the directors’ and supervisors’ total shareholding ratios, the controlling shareholders’ total shareholding ratios, and the IDS provide investors higher level of confidence in the stock price of companies. The major shareholders’ total shareholding ratios and the board size have a negative effect on the EPS of companies.