An Empirical Study on Corporate Governance and Market Valuation in China
| Autor: | Frank M. Song, Junxi Zhang, Qiao Liu, Chong-En Bai, Joe Lu |
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| Rok vydání: | 2006 |
| Předmět: |
Economics and Econometrics
Financial economics Corporate governance corporate governance mechanisms market valuation corporate governance index corporate governance premium Stakeholder ComputingMilieux_LEGALASPECTSOFCOMPUTING Financial system jel:G34 jel:G32 Asian studies Empirical research Economics China Market value Stock (geology) |
| Zdroj: | Frontiers of Economics in China. 1:83-111 |
| ISSN: | 1673-3568 1673-3444 |
| Popis: | This paper empirically studies the relationship between the governance mechanisms and the market valuation of publicly listed firms in China. The authors construct measures for corporate governance mechanisms and measures of market valuation for all publicly listed firms on the two stock markets in China by using data from the firm s annual reports. They then investigate how the market-valuation variables are affected by the corporate governance variables while controlling for a number of factors commonly considered in market valuation analysis. A corporate governance index is also constructed to summarize the information contained in the corporate governance variables. The index is found to have statistically and economically significant effects on market valuation. The analysis indicates that investors pay a significant premium for well-governed firms in China, benefiting firms that improve their governance mechanisms. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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