The Design of Index about Corporate Governance Based on PCA Method

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Abstract:

This article uses the PCA method (Principal component analysis) to evaluate the level of corporate governance. PCA is used to analyze the correlation among 10 original indicators, and extract some principal components so that most of the information of the original indicators is extracted. The formulation of the index of corporate governance can be got by calculating the weight based on the variance contribution rate of the principal component, which can comprehensively evaluate corporate governance.

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Advanced Materials Research (Volumes 926-930)

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4085-4088

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May 2014

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© 2014 Trans Tech Publications Ltd. All Rights Reserved

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