| Author: | Shin, Yoon Sik |
| Title: | Corporate governance and firm’s market value : evidence from Korea |
| Degree: | D.B.A. |
| Year: | 2021 |
| Subject: | Corporate governance -- Korea (South) Industrial management -- Korea (South) Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | 86 pages : color illustrations |
| Language: | English |
| Abstract: | Corporate governance is becoming one of key differentiating factors between long-term success and failure of ecosystems. While the corporate governance of Korea remains one of the worst in the Asia-Pacific region reflected in its chronic undervaluation of Korean stocks relative to peers in other major Asian equity markets, the governance standards have gradually moved into the investing mainstream since the amendment of the securities law in 2013. The structured survey conducted by CLSA and the Asian Corporate Governance Association (ACGA) shows that the firms with higher corporate governance standard trade at greater market value relative to those with lower corporate governance standard in Korea. In addition, independence, among four aspects of corporate governance, i.e. discipline, independence, responsibility, fairness, in the survey, affects a firm's market value the most given Korea's unique economic development model and the system dominated by a couple of large family-run conglomerates so called "chaebols". The analysis also identifies that corporate governance matters more for firms with low dividend yield given its relatively high agency cost and information asymmetry in Korea. Furthermore, the analysis also identifies positive relation between firm's corporate governance standard and its financial performance measured by return on equity and return on assets in Korea. While literatures of the impacts of corporate governance on firm value are voluminous, the study provides more in-depth analysis on the association between four aspects of corporate governance and firm value, the impact of firm's corporate governance standard depending on firm characteristics, the relation between corporate governance and firm's fundamentals and therefore, help management team of firms, investors and policy makers better understand how to improve the corporate governance, increase investment return and dissipate its valuation discount on Korean firms. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 6049.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 750.94 kB | Adobe PDF | View/Open |
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