The Impact of Macroeconomic and Corporate Governance Factors on Firm Value of Taiwanese Green Technology Industry: A Consideration of Differential Slope

  •  Chien Jen Wang    


Presently, the Taiwanese government is emphasizing the development of the green energy industry to lower the country’s dependence on oil imports and to conserve Taiwan’s environment. Green energy is considered to be an emerging and favored industry. This paper uses pooled estimation regression and Differential Slope Estimation to explore the relevant key factors of macroeconomics and corporate governance that affect firm value in Taiwan’s green technology industry. Results suggest that when the return on equity is high, the firm’s stock price increases as well. The TCRI, which is indicative of a firm’s credit rating was found to be significantly and negatively related to stock price. Therefore, a lower credit rating has a higher stock price. In addition, our analysis also showed that both the foreign investor stockholding rate and board size have a significant and positive relationship with stock price. More foreign investors and a larger board of directors may increase the execution and performance of the company’s corporate governance, thereby raising the firm’s stock price.

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