The Repatriation of Foreign Earnings and Firm Value: The Influence of Corporate Governance Ranking Mechanisms and Institutional
Chao-Jung Chen/Department of Accounting, National Pingtung University
Chuan-Pin Chu/Department of Accounting, National Pingtung University
Abstract
This study investigates the effects of the repatriation of foreign earnings on firm valuation, and further explores whether corporate governance ranking mechanisms and institutional investors (active/passive institutional investors) affect the relationship between the repatriation of foreign earnings and firm values. Using a sample of listed companies of the Taiwan Stock Exchange and Taipei Exchange from 2014 to 2018, this study obtains an empirical result that shows a positive relationship between the repatriation of foreign earnings and firm values. Moreover, the effect of foreign earnings repatriated on firm values appears to be more pronounced in firms with high corporate governance ranking results and in firms with high levels of active institutional ownership.
Keywords
The repatriation of foreign earningsCorporate governance ranking mechanismsActive institutional investorsFirm value
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