Does External Monitoring Substitute for or Complement Internal Monitoring by Corporate Board?–Evidence From Korean State-owned Enterprises

Numerous studies have investigated whether regulation substitutes for or complements internal governance. The results have been inconclusive due to their over reliance on agency theory and extensive use of demographic proxy variables to real board activities. We empirically investigate the relationship between government performance evaluation (GPEs) and internal monitoring by SOE boards in the context of Korean state-owned enterprises (SOEs),...