The Value Relevance of Unused Capacity Information: The Role of Board of Directors

  • 黃 品傑

Student thesis: Master's Thesis

Abstract

The capacity utility reflects a firm’s efficiency of using resources and the situation of market supply-and-demand It is closely related to firms’ operating performance and evaluation However there are few literatures discuss the value relevance of capacity utilization or idle capacity In addition the corporate governance environment has great effect on firms’ operating performance earnings quality and investors’ evaluation on firms This study examines the value relevance of idle capacity and explores the role of board characteristics By using a sample of Taiwan listed companies except for financial industry over the period of 2009-2012 this study examines the relationship between idle capacity costs and share price Furthermore this study examine whether the quality of board of directors will enhance the value relevance of idle capacity The empirical results show that when the future market demand is increasing idle capacity and stock price have a significant positive relationship With regard to the moderating effect of board characteristics the results indicate that a more independent board of directors or a higher shareholding ratio will enhance the value relevance of idle capacity
Date of Award2014 Jul 16
Original languageEnglish
SupervisorChaur-Shiuh Young (Supervisor)

Cite this

The Value Relevance of Unused Capacity Information: The Role of Board of Directors
品傑, 黃. (Author). 2014 Jul 16

Student thesis: Master's Thesis