Proceedings of 24th International Business Research Conference
12 - 13 December 2013, Planet Hollywood, Las Vegas, USA, ISBN: 978-1-922069-37-5
The Effect of Change in Governance Structure on Corporate
Performance in Korean Manufacturing Firms
Duk-Ho Kim1 and Joongwha Kim2
This study sees governance structure through the lens of stakeholders
surrounding a firm's activities and argues that a firm's ultimate goal must
be the maximization of the stakeholder value rather than the simple
maximization of stockholders' wealth. In this study, we focus on the
governance adequacy, examining the relationship between governance
structure's change and corporate performance. Using the multiple
regression analysis, we find that the relationship between governance
adequacy and corporate performance is statistically significant. In
addition, when dividing the corporate governance Index into stockholders'
wealth, board of directors, disclosure, audit committee, and dividend
policy, board of directors, disclosure, and dividend policy are significantly
related to the corporate performance.
1
Duk-Ho Kim, Graduate School of Business Administration, Hankuk University of Foreign Studies, Seoul,
Korea, phacheun@daum.net
2
Joongwha Kim, College of Global Business Administration, Hankuk University of Foreign Studies, Seoul,
Korea, kim2345678@hanmail.net
1