eng Science and Education Publishing Journal of Finance and Economics 2328-7276 2016-12-21 4 6 184 190 10.12691/jfe-4-6-3 JFE2016463 article Frederick Adjei fadjei@semo.edu 1 Mavis Adjei 2 Economics and Finance Department, Southeast Missouri State University, Cape Girardeau, USA Marketing Department, Southern Illinois University Carbondale, Carbondale, USA This study compares the two primary measures of corporate governance quality, [1], GIM index and [2] E index using tests for comparing two nonnested models. We find that the GIM index has statistically significantly more power than the E index in explaining the variability in firm value, as measured by Tobin's Q. This finding suggests that the IRRC provisions excluded from the E index may have a statistically significant incremental power in explaining the variability in firm value. http://pubs.sciepub.com/jfe/4/6/3/jfe-4-6-3.pdf corporate governance firm value