Investigation of Target Capital Structure for Electronic Listed Firms in Taiwan

Nieh, Chien-Chung; Yau, Hwey-Yun; Liu, Wenchien

doi:10.2753/ree1540-496x440406

Cited by 24 publications

(25 citation statements)

References 28 publications

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“…For capital structure factor (LV) affecting FV, it is shown that the relationship between CS and FV is nonlinear relationship. This result is consistent with the theory of trade capital structure (Myers, 1977), but disagree with the empirical research results of Nieh et al (2008) and Cheng et al (2010). For control variables, firm size is positively related to firm value, this study is in agreement with the research result of Cuong (2014), Dang et al (2018) and Ha et al (2019).…”

Section: Results and Dicussionsupporting

confidence: 70%

A study on the effect of corporate governance and capital structure on firm value in Vietnam

Khanh¹,

Hung²,

Van³

et al. 2020

10.5267/j.ac

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The paper examines the impact of corporate governance (CG), capital structure (CS) on firm value (FV) of firms in Vietnam. The study used different regression methods using the data collected at enterprises listed on the stock market in Vietnam over the period 2008-2018, with 2937 observations. The research results find that the size of the Board of Directors, the independence of the Board of Directors, the percentage of women participating in the Board of Directors had a positive influence on FV. Besides, in the case of the Chairman of the Board of Directors controlling the CEO, the frequency of the Board meeting had a negative effect on FV. The study has determined that CS has nonlinear influence on FV, in addition, the research results also prove that firm size had positive relationship to FV. The empirical research results are a useful basis to help businesses improve FV, thereby helping businesses need to consider the elements of the Board of Directors in each enterprise, determine the appropriate capital structure.

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Section: Results and Dicussionsupporting

confidence: 70%

A study on the effect of corporate governance and capital structure on firm value in Vietnam

Khanh¹,

Hung²,

Van³

et al. 2020

10.5267/j.ac

View full text Add to dashboard Cite

show abstract

“…Studies by Wang (2013), for example, suggest that under linear homogeneity assumptions, there is a direct correlation between firm value (measured as the performance of a new investment portfolio) and ROE. Based on this, ROE has been employed by earlier scholars such as Chen et al (2008) and Nieh, Yau and Liu (2008) as a measure of firm value.…”

Section: Research Methodology Measuring Firm Valuementioning

confidence: 99%

Enterprise risk management and firm value within China’s insurance industry

Ojiako

et al. 2014

Acta Commercii

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Orientation: The article discusses the relationship between enterprise risk management (ERM) and firm value.Research purpose: The purpose of the study is to empirically examine the relationship between ERM and firm value. The study is undertaken within the context of the Chinese insurance industry.Motivation for the study: Recent attempts to link ERM with firm value have been undertaken primarily in the USA and Europe and have produced ambiguous and inconclusive findings.Research design, approach and method: Data was obtained from the China Insurance Regulatory Commission, a government body responsible for regulating insurance products and services in China. The data sample consisted of 135 insurance companies operating in China (in 2010). Regression modelling is employed to analyse the data.Main findings: The results show the relationship between ERM and firm value at first appears statistically significant within a Pearson correlation matrix but then falls below statistical significance on closer scrutiny through regression analysis. Accordingly, it is recommended that insurers in China should not look to aggressive investment in ERM as a strategy for producing quick gains in firm value.Practical/managerial implications: Risk managers should plan ERM development from a risk management maturity perspective, which equates the highest level of ERM development with ERM’s capacity to improve firm resilience to the unknown and serve as a mechanism for strategic decision-making.Contribution/value-add: The study employed return on equity as a proxy for firm value, utilising ordinary least squares regression modelling to test propositions of the relationships between variables.

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“…Managers' opportunistic behavior has been widely documented in recent years among Taiwanese firms (e.g., Huang and Lin 2007;Lin et al 2009;Nieh et al 2008;Shu et al 2009). Contrary to the conventional wisdom that unusual patterns of earnings occurrences usually suggest managers' opportunistic behavior, this study raises the possibility that such anomaly may also be due to the heuristic bias managers are susceptible to in the process of generating earnings numbers.…”

mentioning

confidence: 99%

Heaping in Reported Earnings: Evidence from Monthly Financial Reports of Taiwanese Firms

Lin

Guan

Fang

2011

Emerging Markets Finance and Trade

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Heaping is a phenomenon in which reported numbers tend to appear in increments that are important for cultural or other reasons. This study reports that heaping is present in monthly earnings reports for publicly listed companies in Taiwan. We find that Taiwanese firms tend to report monthly earnings in increments of 5 in the first two places (digits) of the earnings numbers. Furthermore, we observe predominantly more zeros in the third through fifth places of monthly earnings numbers, suggesting that monthly earnings tend to be reported in increments of 10 in the first three, first four, and first five places. Reporting of monthly earnings in Taiwan is discretionary, and our findings suggest that managers of Taiwanese firms are susceptible to heuristic bias when reporting monthly earnings. These findings complement studies on heaping in U.S. financial markets documenting that managers and financial analysts tend to make earnings per share estimates that heap in increments of nickels.

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Investigation of Target Capital Structure for Electronic Listed Firms in Taiwan

Cited by 24 publications

References 28 publications

A study on the effect of corporate governance and capital structure on firm value in Vietnam

A study on the effect of corporate governance and capital structure on firm value in Vietnam

Enterprise risk management and firm value within China’s insurance industry

Heaping in Reported Earnings: Evidence from Monthly Financial Reports of Taiwanese Firms

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