We develop a valuation model, based on the seminal papers of M&M(1961, 1963), to estimate the growth opportunities, the proxy variable of which will be called as “intrinsic Q”. Using the intrinsic Q, we are studying the relationship between firm investment and growth opportunities during the post-IMF period, when the government has exerted asymmetric regulations on corporate governance.

The empirical results are as follows; first of all, the intrinsic Q shows a statistically significant and positive investment-growth opportunities sensitivity, which is stronger than quasi Tobin's Q, which is adopted as a proxy variable of growth opportunities in general. Second, the large and Korean conglomerate firms show a more statistically significant and positive investment-growth opportunities sensitivity than the smaller and non-conglomerate firms.

In sum, the regulations on corporate governance would help firms with great growth opportunities to invest more.