The effect of board structure on firm value: A multiple identification strategies approach using Korean data
- Authors
- Black, Bernard; Kim, Woochan
- Issue Date
- 4월-2012
- Publisher
- ELSEVIER SCIENCE SA
- Keywords
- Korea; Outside directors; Audit committee; Corporate governance; Board of directors
- Citation
- JOURNAL OF FINANCIAL ECONOMICS, v.104, no.1, pp.203 - 226
- Indexed
- SSCI
SCOPUS
- Journal Title
- JOURNAL OF FINANCIAL ECONOMICS
- Volume
- 104
- Number
- 1
- Start Page
- 203
- End Page
- 226
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/108834
- DOI
- 10.1016/j.jfineco.2011.08.001
- ISSN
- 0304-405X
- Abstract
- 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 whether and how board structure affects firm market value. The law mandates 50% outside directors and an audit committee for large public firms, but not smaller firms. We study this shock using event study, difference-in-differences, and instrumental variable methods, within an overall regression discontinuity approach. The legal shock produces economically large share price increases for large firms, relative to mid-sized firms; their share prices jump in 1999 when the reforms are announced. (C) 2011 Elsevier B.V. All rights reserved.
- Files in This Item
- There are no files associated with this item.
- Appears in
Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.