Corporate Governance, Corporate Social Performance, Financial Performance and Firm Value in Korea

Corporate Governance, Corporate Social Performance, Financial Performance and Firm Value in Korea

  This study examined relationships among corporate governance, corporate social performance (CSP), corporate financial performance (CFP), and firm value of 163 Korean firms for four years. Results show that foreign investors’ ownership was positively related to CSP in post-financial crisis period of Korea although unrelated before the crisis. In contrast, institutional holdings, individual investors’ ownership, and the largest block ownership exhibited no relationship with CSP in pre- and post-crisis periods. CSP was positively related to both CFP and firm value in pre- and post-crisis periods. Implications are discussed.