Are better-governed firms more innovative? Evidence from Korea

Paul Moon Sub Choi, Chune Young Chung, Xuan Vinh Vo, Kainan Wang

Research output: Contribution to journalArticlepeer-review

11 Scopus citations


This study examines the effect of corporate governance quality on firm innovation in Korea, where innovation is very active. We focus on the relationship between a firm's corporate governance score (CGS) and its innovation performance in various empirical settings using manually collected patent data. We find that CGS positively influences firm's innovation activity, which is driven by board's quality and transparent disclosure. This relationship is more evident in chaebol-affiliated firms, suggesting that sound corporate governance is effective in promoting innovation activities when the misalignment between managers’ and other stakeholders’ interests is grave.

Original languageEnglish
Pages (from-to)263-279
Number of pages17
JournalInternational Review of Economics and Finance
StatePublished - Sep 2020

Bibliographical note

Publisher Copyright:
© 2020 Elsevier Inc.


  • Chaebol
  • Corporate governance
  • Emerging market
  • Firm innovation
  • Patent


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