현금흐름과 기업특성이 기업설명회에 미치는 영향

Managers often resort to IR(Investor Relations) in order to secure external financing, to enhance the value and image of the firms and to improve accounting transparency. On the other hands, investors utilize IR information in making investment decisions. Korean firms experienced discounts on their share prices in the international capital markets in the aftermath of the Asian financial crisis in late 1990s. So they tried to improve accounting transparency by disclosing more reliable financial information. IR is a vehicle to communicate inside information to outsiders. Investors can make rational investment decisions by using IR information and managers can reduce the cost of capital, because IR reduces information asymmetry problems between managers and investors. Prior studies document that IR has many purposes: improvement of firm's image, maintenance of stock price, facilitation of financing, a new source of capital raise, etc. So we study the relationship between firm characteristics and IR activities that are focused on the improvement of firm's image and the facilitation of financing. Hence, we study how the IR activities are affected by cash flows from operating and investing activities. We also study the relationship between IR and cash flows from financing activities. This study uses as control variables the equity ownership by foreign investors, the equity ownership by controlling stockholders, firm size, leverage ratio, audit firm size, age, year dummy and industry dummy. The main role of IR is to help investors meet with managers and to attract investment from them. Through IR, firms also deliver their financial information to investors. It looks that firms try to affect investors' decisions by holding IR which will help firms raise funds more easily. Therefore, we analyze how cash flows and firm characteristics affect the frequency of IR. We investigate 2,230(380; IR sample and 1,850; non-IR sample) firm-year observations of non-banking publicly traded firms with December 31 fiscal year end over the period of 2003-2006. We used the frequency of IR(IRN) and whether or not to hold IR(IRD) as dependent variables. And cash flows from financing activities (CFF) is used as a dependent variable, too. The results of the study show that firms with good news and investment plans tend to hold IRs. In other words, cash flows from operating(CFO) and cash flows from investing activities(CFI) of IR firms are different from non-IR firms significantly. CFO relationship with IRN(IRD) has a positive while CFI has a negative relationship with IRN(IRD). Second, we found that firms with IRs tend to have higher CFF. When we regress CFF on IR, CFF is affected by IRD positively and significantly. But CFF is not affected by IRN significantly. So we infer that whether or not the firms hold IRs has significant relationship with CFF, whereas the frequency of IR doesn't. There is also a significantly positive(negative) relationship between FOR, SIZE(OWN) and IRD. There have been numerous studies on the relationship between information disclosed on IR and firm characteristics. A majority of them are surveys about IR activities. Few studies have examined the relationship between IR and cash flows from each activities. This paper contributes to the financial disclosure literature by studying the purpose of having IRs. Also this study provides evidence that IR decreases the information asymmetry problems by communicating between managers and outsiders. Additional work is needed to investigate other variables that might influence the relationship between IR and cash flows.