Corporate Governance, Leverage, and Firm Performance in South Korea

Corporate Governance affects corporate financial decisions and is a source of financial performance. This study investigates the complex interplay between corporate governance, leverage, and profitability for a sample of Korean firms. We used data from 510 Koran firms from 2010 to 2020 and employed the Ordinary Least Square estimation technique. Our results show that corporate governance components such as board size, females on board, and audit quality neither impact firms’ leverage nor their profitability. However, the leverage of Korean firms improves their profitability. Our results have managerial implications for Korean firms in managing their performance effectively.