Investor Relations, Corporate Governance Practices and Firm Value

초록

This study investigated the effect of corporate governance of the firms included in the Korea Composite Stock Price Index (KOSPI) on investor relations (IR). Prior studies suggested a positive association between several firm characteristics and investor relations. However, there was no noteworthy research on the relationship between comprehensive corporate governance practices and investor relations for Korean firms. Using 3,821 firm-year observations over the period 2002-2009, this study offered empirical evidence on the link between firm-level corporate governance practices and investor relations. Empirical results revealed that the KOSPI firms’ sound corporate governance practices had a positive effect on the incidence of conference calls. The study also revealed that the firms with sound corporate governance practices increased its yearly number of conference calls. In particular, the corporate disclosure policy is the most important factor in corporate governance practices.Also, this paper found that conference calls and corporate governance practices increased firm value.

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