Journal of Business Ethics

, Volume 81, Issue 2, pp 447–463 | Cite as

Ethical Commitment, Financial Performance, and Valuation: An Empirical Investigation of Korean Companies

Article

Abstract

A variety of stakeholders including investors, corporate managers, customers, suppliers, employees, researchers, and government policy makers have long been interested in the relationship between the financial performance of a corporation and its commitment to business ethics. As a subject of research, the relations between business ethics and corporate valuation has yet to be thoroughly quantified and investigated. This article is an effort to amend this inadequacy by demonstrating a statistically significant association between ethical commitment and corporate valuation measures. Consistent with anecdotal evidence, we have found a significant association between the ethical commitment of Korean companies and their valuation on the Korean stock market. However, the result reveals that the association between ethical commitment and financial performance is not significantly supported.

Keywords

business ethics ethical commitment ethical commitment index financial performance valuation Korea 

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Copyright information

© Springer Science+Business Media B.V. 2007

Authors and Affiliations

  1. 1.KDI School of Public Policy and ManagementSeoulRepublic of Korea
  2. 2.Chosun UniversityDong-GuRepublic of Korea

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