Previous studies analyze a firm’s market value as it relates to financial statements only. This study applies Ohlson’s (1995) valuation model to examine the relationship between equity market value and corporate governance features that financial statements cannot reveal. Using the samles of the listed companies in electronic sector trading on the OTC, this research discusses whether corporat governance affects the value of equity market value. We find that the higher the holding stock ratio of the firs and second stockholders, the higher equity market value though effective supervision function. Besides, the holding stock ratio of the directors, the lower equity market value though the loss from unsuitable decision. Additionally, the research applies the increasing amount explanary capability analysis and finds that validity of the inclusion of these corporate governance indicators can enhance the validity of the Ohlson valuation model.
