Does Corporate Governance Predict Firms' Market Values? Evidence from Korea
Does Corporate Governance Predict Firms’ Market Values? Evidence from Korea ArXiv ID: ssrn-1098690 “View on arXiv” Authors: Unknown Abstract We report strong OLS and instrumental variable evidence that an overall corporate governance index is an important and likely causal factor in explaining the ma Keywords: corporate governance index, OLS regression, instrumental variable, causal inference, firm value, Equities (Corporate Governance) Complexity vs Empirical Score Math Complexity: 3.0/10 Empirical Rigor: 7.0/10 Quadrant: Street Traders Why: The paper relies on standard OLS and IV econometric models (moderate math) and emphasizes causal identification using Korean governance data, indicating strong empirical testing. It is data-intensive but does not involve advanced mathematical derivations. flowchart TD A["Research Goal:<br>Does Corporate Governance<br>Predict Firm Value?"] --> B["Data Sources"] B --> C["Key Methodologies"] subgraph B ["Data/Inputs"] B1["Korean Firm Data"] B2["Corporate Governance Index"] B3["Market Value Metrics"] end subgraph C ["Methodology"] C1["OLS Regression"] C2["Instrumental Variable<br>Estimation"] end C --> D["Computational Process:<br>Causal Inference Analysis"] D --> E["Key Findings"] subgraph E ["Outcomes"] E1["Strong OLS Evidence"] E2["Instrumental Variable<br>Validation"] E3["Governance Index<br>Significantly Predicts<br>Firm Value"] end