Disclosure rules for the Korean Stock Exchange require Korean firms to disclose average executive and employee pay. These disclosures provide a unique opportunity to examine factors influencing the executive pay multiple (executive-employee pay disparity) and its effects on performance. We find...

We examine factors influencing firms' strategic disclosure of executive pay in Korea. Because the disclosure rules in Korea do not mandate but only recommend that firms distinguish between inside executive directors and outside directors when reporting the average pay of directors, this...