Title of article :
The effect of board structure on firm value: A multiple identification strategies approach using Korean data
Author/Authors :
Black، نويسنده , , Bernard and Kim، نويسنده , , Woochan، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2012
Pages :
24
From page :
203
To page :
226
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.
Keywords :
board of directors , Audit committee , Corporate governance , Korea , Outside directors
Journal title :
Journal of Financial Economics
Serial Year :
2012
Journal title :
Journal of Financial Economics
Record number :
2212349
Link To Document :
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