The authors investigate <i>R</i>² and its relationship with dividend payouts in the Korean stock market. <i>R</i>² is derived from the market model regression. Their results are consistent with the previous literature on corporate governance and dividend payouts: they find that <i>R</i>² is higher for business group...

We propose a new determinant of firm value within a business group: controlling shareholders' value (CSV), the value of controlling shareholders' stake in an affiliate divided by their stake in all affiliates. We posit that controlling shareholders focus attention on the high-CSV affiliates....