CGES | = | The corporate governance evaluation system, the TEJ database divides the results of the corporate governance evaluation system (CGES) into eight levels, which are: top 5%, 6% to 20%, 21% to 35%, 36% to 50%, 51% to 65%, 66% to 80%, 81% to 100%. Insufficient data that are not included in the evaluation have been replaced in this research with scores of 8 to 1, with 8 point for the top 5%, 7 point for 6% to 20%, 6 point for 21% to 35%, and so on. 81% to 100% are given 2 point and companies with insufficient data that not included in the evaluation are given 1 point; |
DME | = | the natural log of the difference between senior manager compensation and salaries of full-time employees in non-management positions |
SIZE | = | the natural log of total assets; |
DE | = | debt ratio; |
ROA | = | return on assets; |
DP | = | dividend payout ratio; |
BHold | = | the board of directors’ stock holding ratio; |
MHold | = | the manager shareholding ratio; |
PDM | = | the proportion of directors serving as managers; |
AGE |
| age of company establishment; |
Foreign |
| the holdings of foreign investors; |
Public |
| government agencies holding shares; |
ε |
| residual term. |