This paper examines how the degree of market soundness regulation affects firm value. During the sample period of this paper, the delisting requirements of the Korea Exchange (KRX) securities market and KOSDAQ were competitively strengthened with time lags between them. As a result, before 2000, the securities market had stronger delisting requirements; during the 2000-2002 period, KOSDAQ had stronger delisting requirements; and after 2003, the differences between the two markets gradually diminished. Stringent exit requirements are expected to enhance firm value because they increase firms' efforts to ensure soundness and send positive signals to the market. Moreover, since the strength differential in delisting requirements between the two markets changed during the sample period, corresponding changes in the average difference in firm values traded on the two markets should have occurred. Listing on foreign markets with strong soundness regulations or listing depositary receipts should also have a positive effect on firm value. The empirical analysis results showed that during the sample period, firms traded in the market with stronger delisting requirements and thus stronger soundness regulation had higher values. That is, in the early period, firms traded on the securities market had higher values; in the middle period, firms traded on KOSDAQ had higher values; and in the later period, no such difference was observed. Additionally, firms that issued depositary receipts abroad were found to have higher values than those that did not. These results hold after controlling for variables that affect firm value, and therefore provide empirical support for the proposition that strong soundness regulation has an additional positive effect on firm value.