Independent directors’ dissensions and firm value

Wonseok Choi, Monika K. Rabarison, Bin Wang

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


Using a novel dataset of independent directors’ voting activities on items proposed by managers of Korean firms, we investigate whether independent directors’ dissension in board meetings plays an effective role in enhancing firm value through improved corporate governance. Our results indicate that dissension improves firm value. This finding is robust to different measures of firm value and alternative model specifications including subsample, propensity score matching, and instrumental variable analyses. Overall, we contribute to the understanding of the relation between corporate governance and firm value. Specifically, we provide new evidence that the monitoring by independent directors enhances firm value.

Original languageEnglish
Pages (from-to)258-271
Number of pages14
JournalQuarterly Review of Economics and Finance
StatePublished - May 2021


  • Board of directors
  • Corporate governance
  • Dissension
  • Firm value
  • Independent


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