The study is that the detection of the remuneration committee to set up or not and remuneration committee characteristics on the relevance of the value of the companies in order to explore the establishment of the remuneration committee in the interests of the protection shareholders’ equity and top management, corporate governance mechanism more perfect, and thus enhance firm value.
In this study, the Tobin’s Q is substitution variables of firm value, remuneration Committee established the independence of the remuneration committee, the size of the professional nature of the Remuneration Committee and the Remuneration Committee as independent variables, control variables company size, debt ratio, and Nomination Committee set up or not.
The results show that set up the remuneration committee and firm value is positive correlation, and the accounting profession, Economics profession, and the size of the Remuneration Committee and firm Value are positive correlation. The law profession and the firm Value is negatively correlated. The remuneration committee independence and enterprise value are related, but not significantly.
