Does Corporate Governance Affect Labor Investment Efficiency?

This study examined the effect of corporate governance on labor investment efficiency, using 5178 firm-year samples from companies listed Korean stock market over period 2011 to 2019. In addition, relationship between and efficiency according whether company belongs a chaebol group was examined. Corporate measured KCGS’s ratings. tried verify inefficiency due information asymmetry is improved by excellent governance. The results show that in case entire sample, significant positive (+) direction. That is, it an empirical result indicating with sound structure making effective investment. were divided into overinvestment underinvestment samples, analyzed separately two samples. According results, only more statistically belonging group. provided implications for authorities, shareholders, investors, etc., suggests role as mechanism alleviate agency problem managers investors.