Researcher ORCID Identifier


Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

William Lincoln

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Despite South Korea having one of the largest economies in the world, the phenomenon, known as the “Korea Discount”, implies a severe devaluation of Korean firms in comparison to their global peers. This paper examines the association between country and firms’ valuations. This study also investigates the key differences between Korean and American companies to find the determinants of the devaluation. These characteristics include: chaebol, number of board members, percent of independent members on the board, geopolitical risk of North Korea, dividend yield, and dividend payout ratio. The effects on Korean and American firms are analyzed using data from 240 firms, from the calendar years of 2012 to 2019. My findings indicate that although the association between country and firm valuation existed in earlier years, it went away over time. Additionally, my results find a significant positive association between dividend payout ratio and the valuation of firms, implying the need for stronger dividend policy in the future.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.