In this study, we assessed the relationship between corporate governance and equity financing of firms. Our results reveal that firms with good corporate governance are more likely to use equity financing than are firms with poor corporate governance. The magnitude of the equity issue is also related positively with the corporate governance index. Among the individual components of the corporate governance measures, the number of board members and the percentage of institutional investors are most significantly related to the frequency and magnitude of equity financing.
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ABSTRACT I. INTRODUCTION II. RESEARCH DESIGN 2.1. Sample 2.2. Corporate Governance Measure 2.3. Regression Model III. TEST RESULTS 3.1. Univariate Result 3.2. Regression Results 3.3. Test Using Individual Corporate Governance Measure 3.4. Robustness Check IV. CONCLUSION REFERENCES TABLE