Research on Relevance between Equity Value and Corporate Governance in China

Deepen and quantitative research of corporate governance will help companies optimize their governance structure, support authorities to develop corporate governance guidelines. In order to research on value relevance of corporate governance, Ohlson (1995) price model is used to analyze a sample of listed companies, which make the research no longer limited to the financial statements. Studies shows that corporate governance factors can explain the equity value in a great scale, ownership concentration, managerial ownership, the scale of management and supervision, frequency of meetings and board of directors and shareholders' remuneration and other factors have great influence on corporation market value.