OLS Regression

Does Corporate Governance Predict Firms’ Market Values? Evidence from Korea ArXiv ID: ssrn-2094729 “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 Keywords: corporate governance, OLS regression, instrumental variables, firm performance, agency theory, Equities (Corporate Governance) Complexity vs Empirical Score Math Complexity: 2.5/10 Empirical Rigor: 7.0/10 Quadrant: Street Traders Why: The paper relies on standard econometric techniques (OLS, 2SLS) with accessible interpretation (Tobin’s q, t-stats) rather than dense mathematical theory, but demonstrates strong empirical rigor through a large dataset, instrumental variables exploiting a natural experiment (regulatory threshold), and robustness checks. flowchart TD A["Research Goal<br>Does Corporate Governance<br>Predict Firm Market Value?"] --> B["Data Source<br>Korean Stock Market Data"] B --> C["Key Methodology<br>OLS & Instrumental Variables IV"] C --> D["Computational Process<br>Regressing Firm Value on<br>Corporate Governance Index"] D --> E{"Key Finding"} E --> F["Strong Causal Evidence<br>Corporate Governance<br>Significantly Predicts Market Value"]

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

Does Corporate Governance Predict Firms’ Market Values? Evidence from Korea ArXiv ID: ssrn-311275 “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 Keywords: corporate governance, OLS regression, instrumental variables, firm value, ownership structure, Equities (Corporate Governance) Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 7.0/10 Quadrant: Street Traders Why: The paper primarily uses OLS and instrumental variable (IV) regression methods without advanced mathematical derivations, placing math complexity at a low level. However, it demonstrates high empirical rigor with a clear backtest-ready design, including a proprietary index (KCGI), instrumental variables based on Korean legal rules, and sensitivity checks on market value metrics. flowchart TD A["Research Question: Does Corporate Governance<br>predict Korean firms' market value?"] A --> B["Data & Inputs<br>Firm-level governance & value data from Korea"] B --> C["Methodology: Core Analysis"] C --> D["OLS Regression<br>Initial association estimates"] C --> E["Instrumental Variables<br>Address endogeneity, estimate causal effect"] D & E --> F["Key Findings<br>Governance index significantly explains<br>and likely causes higher firm value"]