Effect of the Absence of Unethical Controlling Shareholders on Firm Value and the Moderating Role of Corporate Governance: Evidence from South Korea

Prior research on unethical controlling shareholder is limited. This study examines the effect of evanishment shareholders’ risk firm value and how corporate governance moderates this from a principal–principal agency perspective. proposes contingent model as mechanism to provide professional managers with managerial autonomy. identifies 43 cases shareholders Korean conglomerates being absent due their imprisonment 2006 2015. The regression analysis results indicate that risks does not significantly influence affiliated firms’ value. supports positive Although statistical significance low, it observes tendency for amplify relationship between dissolution contributes literature by one first explore based theory.