Do foreign investors make firms more transparent? Evidence from Korea

IF 2.9 3区经济学 Q2 BUSINESS, FINANCE Journal of Multinational Financial Management Pub Date : 2024-05-03 DOI:10.1016/j.mulfin.2024.100860

Junyong Lee , Frederick Dongchuhl Oh

引用次数: 0

Abstract

In this study, we investigate whether foreign equity participation enhances the level of transparency in Korean listed firms’ accounting information. Using panel data on the Korean listed firms during the 1999–2019 period, we find that foreign ownership has a positive effect on the accounting transparency of firms. This suggests that foreign investors effectively monitor the earnings management activities of a firm and contribute to increasing the quality of accounting information. In addition, this positive impact of foreign equity ownership is more pronounced in non-chaebol firms than in chaebols. We further show that foreign investors reinforce the effect of changes in accounting systems on the transparency of Korean firms. Finally, firms with enhanced transparency by foreign investors perform better in the future. Overall, our study highlights the importance of foreign investors for enhancing accounting transparency in the Korean stock market. (JEL F21, F65, G15, G30, M40)

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外国投资者会使公司更加透明吗？韩国的证据

在本研究中，我们探讨了外资参股是否会提高韩国上市公司会计信息的透明度水平。利用 1999-2019 年期间韩国上市公司的面板数据，我们发现外资持股对公司会计透明度有积极影响。这表明外国投资者能有效监督企业的收益管理活动，有助于提高会计信息的质量。此外，外资持股对非财阀企业的积极影响比财阀企业更为明显。我们进一步表明，外国投资者加强了会计制度变革对韩国企业透明度的影响。最后，外国投资者提高了透明度的企业在未来会有更好的表现。总之，我们的研究强调了外国投资者对提高韩国股票市场会计透明度的重要性。(JEL F21, F65, G15, G30, M40)

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来源期刊

Journal of Multinational Financial Management BUSINESS, FINANCE-

CiteScore

7.30

自引率

4.80%

发文量

审稿时长

30 days

期刊介绍： International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.

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