Journal of Business Ethics

, Volume 130, Issue 1, pp 223–230 | Cite as

Value Relevance of Tobin’s Q and Corporate Governance for the Taiwanese Tourism Industry

  • Mao-Chang Wang


For knowledge- and invention-based industries, scholars have introduced the firm value, which is composed of traditional financial capital and intangible intellectual capital, and Tobin’s Q, which is the commonly used approach for intellectual capital valuation. Scholars have thus evaluated firm valuation appropriately by considering corporate governance. This study applies the multi-regression model to present a discussion on the value relevance of intellectual capital and corporate governance concerning the tourism industry in Taiwan. The results show that intellectual capital is positively related to firm valuation, and that corporate governance influences the positive relationship between intellectual capital and firm valuation. The tourism industry must focus on intellectual capital and corporate governance.


Tobin’s Q Intellectual capital Corporate governance Firm valuation Tourism industry 

JEL Classification

G32 G34 


  1. Abbott, L. J., Parker, S., & Peters, G. F. (2004). Audit committee characteristics and restatements. Auditing: A Journal of Practice and Theory, 23(1), 69–87.CrossRefGoogle Scholar
  2. Aboody, D. (1996). Market valuation of employee stock options. Journal of Accounting and Economics, 22(1–3), 357–391.CrossRefGoogle Scholar
  3. Agrawal, A., & Knoeber, C. (1996). Firm performance and mechanism to control agency problem between managers and shareholders. Journal of Financial and Quantitative Analysis, 31(3), 377–397.CrossRefGoogle Scholar
  4. Ahmed, A. S., & Duellman, S. (2007). Accounting Conservatism and Board of Director Characteristics: An empirical analysis. Journal of Accounting and Economics, 43(2–3), 411–437.CrossRefGoogle Scholar
  5. Al-Najjar, B. (2014). Corporate governance, tourism growth and firm performance: Evidence from publicly listed tourism firms in five Middle Eastern countries. Tourism Management, 42, 342–351.CrossRefGoogle Scholar
  6. Andres, P. D., Azofra, V., & Lopez, F. (2005). Corporate boards in oecd countries: size, composition, functioning and effectiveness. Corporate Government, 13(2), 197–210.CrossRefGoogle Scholar
  7. Bedard, J., Chtourou, S. M., & Courteau, L. (2004). The effect of audit committee expertise, independence, and activity on aggressive earnings management. Auditing: A Journal of Practice and Theory, 23(2), 13–35.CrossRefGoogle Scholar
  8. Bradley, K. (1997). Intellectual capital and the new wealth of nations. Business Strategy Review, 8(1), 53–62.CrossRefGoogle Scholar
  9. Brickley, J., Coles, J., & Jarrell, G. (1997). Leadership structure: Separating the CEO and chairman of the board. Journal of Corporate Finance, 3(3), 189–220.CrossRefGoogle Scholar
  10. Chauvin. K. W., & H. Mark. (1993). Advertising, R&D expenditures and the market value of the firm. Financial Management, 128–140.Google Scholar
  11. Chen, C. Y. (2003). Investment opportunities and relation between equity value and employees’ bonus. Journal of Business Financial and Accounting, 30(7), 941–973.CrossRefGoogle Scholar
  12. Chen, C. Y., Chang, C. Y. C., Wang, L. F., & Lee, W. C. (2005). The Ohlson valuation framework and value-relevance of corporate governance: An empirical analysis of the electronic industry in Taiwan. NTU Management Review, 15(2), 123–142.Google Scholar
  13. Chung, K. H., & Pruitt, R. S. (1994). A simple approximation of Tobin’s Q. Financial Management, 23(3), 70–74.CrossRefGoogle Scholar
  14. Cook, R. A., Yale, L. J., & Marqua, J. J. (2010). Tourism: The business of travel (4th ed.). New Jersey: Prentice Hall.Google Scholar
  15. Core, J. E., Holthausen, R. W., & Larcker, D. F. (1999). Corporate governance, chief executive officer compensation, and firm performance. Journal of Financial Economics, 51(3), 371–406.CrossRefGoogle Scholar
  16. Crutchley, C., Gamer, J., & Marshall, B. (2002). An examination of board stability and the long-term performance of initial public offerings. Financial Management, 31(3), 63–90.CrossRefGoogle Scholar
  17. Demsetz, H., & Lehn, K. (1985). The structure of ownership: Causes and consequence. Journal of Political Economy, 93(6), 1155–1177.CrossRefGoogle Scholar
  18. Denis, K. D. (2001). Twenty-five years of corporate governance research and counting. Review of Financial Economics, 10(3), 191–212.CrossRefGoogle Scholar
  19. Dickey, D. A., & Fuller, W. A. (1981). Likelihood ratio statistics for autoregressive time series with A unit root. Econometrica, 49(4), 1057–1072.CrossRefGoogle Scholar
  20. Edvinsson, L., & Malone, M. (1997). Intellectual capital:realizing your company’s true value by finding its hidden roots. New York: Harper Collins.Google Scholar
  21. Eisenberg, T., Sundgren, S., & Wells, M. (1998). Large board size and decreasing firm value in small firms. Journal of Financial Economics, 48(1), 35–54.CrossRefGoogle Scholar
  22. Ghosh, A., & Moon, D. (2005). Audit partner tenure and perceptions of audit quality. The Accounting Review, 80(2), 585–612.CrossRefGoogle Scholar
  23. Greene, W. H. (2008). Econometric Analysis (6th ed.). Upper saddle River, NJ: Prentice Hill Publishing.Google Scholar
  24. Helena, N. R., & Tanja, M. (2007). Intellectual capital in the hotel industry: A case study from Slovenia. Hospitality Management, 26, 188–199.CrossRefGoogle Scholar
  25. Hormiga, E., Batista-Canino, R. M., & Sánchez-Medina, A. (2011). The role of intellectual capital in the success of new ventures. International Entrepreneurship and Management Journal, 7(1), 71–92.CrossRefGoogle Scholar
  26. Jensen, M. C. (1993). The modern industrial revolution, exit and the failure of internal control system. Journal of Finance, 48(3), 831–880.CrossRefGoogle Scholar
  27. Jensen, M. C., & Meckling, W. (1976). Theory of the firm: Managerial behavior agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305–360.CrossRefGoogle Scholar
  28. Jensen, M. C., & Ruback, R. S. (1983). The market for corporate control: The scientific evidence. Journal of Financial Economics, 11(1–4), 5–50.CrossRefGoogle Scholar
  29. La Porta, R., Lopez-de-Silanes, F., Schleifer, A., & Vishny, R. (2002). Investor protection and corporate valuation. Journal of Financial, 57(3), 1147–1170.Google Scholar
  30. Leuz, C., Nanda, D., & Wysocki, P. (2003). Earnings management and institutional factors: An international comparison. Journal of Financial Economics, 69(3), 505–527.CrossRefGoogle Scholar
  31. Lev, B. (2001). Intangibles: Management, measurement and reporting. Washington, DC: Brookings Institution Press.Google Scholar
  32. Lev, B., & Zarowin, P. (1999). the boundaries of financial reporting and how to extend them. Journal of Accounting Research, 37(2), 353–389.CrossRefGoogle Scholar
  33. Mao, C. K. (2009). Development and vision of tourism industries in Taiwan. Taiwan Economic Research Monthly, 32(8), 14–20.Google Scholar
  34. O’Donnell, O’Regan, P., Coates, B., Kennedy, T., Keary, B., & Berkery, G. (2003). How interaction: The critical source of intangible value. Journal of Intellectual Capital, 4, 82–99.CrossRefGoogle Scholar
  35. Ohlson, J. (1995). Earnings, book values, and dividends in equity valuation. Contemporary Accounting Research, 11(2), 661–687.CrossRefGoogle Scholar
  36. Roos, J., Edvinsson, R. L., & Dragonetti, N. (1998). Intellectual capital: Navigating in the new business landscape. New York, NY: New York University Press.Google Scholar
  37. Securities and Futures Institute. (2010). Corporate governance in Taiwan. Taipei: Securities and Futures Institute.Google Scholar
  38. Stewart, T. A. (1997). Intellectual capital:The new wealth of organizations. New York, NY: Doubleday Dell Publishing Group.Google Scholar
  39. Su, R. K., Lee, C. H., Lee, Y. C., & Wang, L. L. (2006). Intellectual Capital Valuation and Model Analysis. In National Cheng.-Chi University Taiwan Intellectual Capital Research Center (Ed.), Intellectual Capital Management (pp. 273–295). Taipei: Hwa Tai Co.Google Scholar
  40. Taegoo, K., Joanne, J. Y., & Gyehee, L. (2011). The HOINCAP scale: Measuring intellectual capital in the hotel industry. The Service Industries Journal, 31(13–14), 2243–2272.Google Scholar
  41. Vafeas, N. (2005). Audit committees, boards and the quality of reported earnings. Contemporary Accounting Research, 22(4), 1093–1122.CrossRefGoogle Scholar
  42. Wang, M. C. (2013). Value relevance on intellectual capital valuation methods: The role of corporate governance. Quality & Quantity: International Journal of Methodology, 47(2), 1213–1223.CrossRefGoogle Scholar
  43. Whidbee, D. (1997). Board composition and control of shareholder voting rights in the banking industry. Financial Management, 26(4), 27–41.CrossRefGoogle Scholar
  44. Wilcox, R. (2003). Applying contemporary statistical techniques. Amsterdam: Academic Press.Google Scholar
  45. Yeh, Y. H., Lee, T. S., & Ko, C. E. (2002). Corporate governance and rating system. Taipei: Sun Bright Co.Google Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  1. 1.Department of AccountingChinese Culture UniversityTaipeiTaiwan

Personalised recommendations