Purpose – This paper seeks to explore such questions as: “What are the impacts of foreign investors and what are the channels through which foreign investors contribute to or detracts from firm value in Korea?” It aims to discuss how foreign investors and foreign outside directors interact...

We examine one effect of a firm's ownership-control disparity on foreign investors in emerging markets by investigating how the disparity influences foreign investors' shareholdings in Korean firms. Using a panel sample of 192 firms from 2005 to 2009, we find that foreign shareholders invest...