Korea

Working Paper

Which Aspects of Corporate Governance Do and Do Not Matter in Emerging Markets

Well-constructed, country-specific “corporate governance indices” can predict higher firm values in emerging markets. However, there is little credible research on which aspects of governance drive that overall relationship. We study that...Read more

Bernard Black
Woochan Kim
14 December 2019

Methods for Multicountry Studies of Corporate Governance (and Evidence from the BRIKT Countries)

We discuss empirical challenges in multicountry studies of the effects of firm-level corporate governance on firm value, focusing on emerging markets. We assess the severe data, “construct validity,” and endogeneity issues in these studies,...Read more

Bernard Black
Woochan Kim
14 December 2019

The Effect of Board Structure on Firm Value: A Multiple Identification Strategies Approach Using Korean Data

Outside directors and audit committees are widely considered to be central elements of good corporate governance. We use a 1999 Korean law as an exogenous shock to assess how board structure affects firm market value. The law mandates 50% outside...Read more

Bernard Black
Woochan Kim
14 December 2019

Why Does Corporate Governance Affect Firm Value: Evidence on a Self-Dealing Channel from a Natural Experiment in Korea

Prior work in emerging markets provides evidence that better corporate governance predicts higher market value, but very little on the specific channels through which governance increases value. We provide evidence, from a natural experiment in...Read more

Bernard Black
Woochan Kim
Hasung Jang
14 December 2019

Shareholder Suits and Outside Director Liability: The Case of Korea

Reforms to Korean corporate and securities law carried out in the wake of the 1997-1998 East Asian financial crisis included a mandate that boards include a minimum number of outside directors and facilitation of shareholder lawsuits against...Read more

Bernard Black
Brian Cheffins
Michael Klausner
14 December 2019

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