Governance and Corporate Value according toThe Adequacy of The Non－life InsuranceCompany’s Risk Based Capital Ratio

In this study, between 100% and less than 200% of the relatively low RBC(Risk Based Capital) was defined as non－life insurers that maintained adequate available capital, and if it was more than 200%, it was classified as companies with excessive. Companies with good governance structure were expected to have a relatively low ratio of appropriate available capital companies and analyzed. As a result of the analysis, first, in the case of appropriate available capital companies with a relatively low RBC, the governance structure (maximum shareholder share) was expected to work well and have significantly large corporate value, but it was not. However, the higher the RBC, the better the governance structure (maximum shareholder share) works, increasing corporate value. This is consistent with the fact that the largest shareholders can increase their level of cash holdings with the intention of increasing their discretion, so companies with higher available capital will be more effective in making decisions based on the largest shareholder s stake. Second, the governance structure (outside director ratio) had a significant positive (＋) relationship with corporate value in both appropriate and excessive payment capacity ratio companies. The ratio of outside directors was not differentiated according to the adequacy of the payment capacity ratio. Third, it was analyzed that the governance structure (foreign ownership ratio) has a significant positive (＋) relationship with corporate value as companies with an appropriate RBC, and there was no significance in the case of excess blue－chip companies. The foreign equity ratio has a more significant impact on corporate value as companies maintain adequate available capital, which is conceptually consistent with the analysis results in that foreign investors prefer dividends rather than accumulation of available capital and effectively allocate resources by operating governance. This study focuses on the adequacy of the RBC(more than 100% to less than 200%) and believes that the corporate governance structure will work well and have a significant positive (＋) effect on corporate value. However, due to the characteristics of industries where there are not many listed companies, it is not possible to conduct empirical analysis with a large number of samples.