Science and Education Publishing Journal of Finance and Economics 2328-7276 4 6 2016 12 21 Gompers versus Bebchuck Governance Measure and Firm Value 184 190 EN Frederick Adjei Economics and Finance Department, Southeast Missouri State University, Cape Girardeau, USA Mavis Adjei JFE2016463 10.12691/jfe-4-6-3 2016 8 13 2016 10 22 2016 12 19 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.