코스닥 IPO 企業에 대한 외국인투자의 보증효과에 대한 實證硏究

The purpose of this paper is to examine the certification effect for investments by foreign investors. The certification effect hypothesis is originated from the market for IPOs and suggests that a third party who is more active and more prestigious in the capital market can certify the quality of initial public offerings and thus reduce their underpricing. Foreign investors have accumulate valuable reputation capital through repeated successful investments and interactions in Korean capital markets. Thus they will restrain themselves from investing low-quality firms and increase the market value of those firms. This paper empirically examines this certification effect through testing the relationship between the foreign investment and the firm value. The results indicate that foreign investors indeed enhance the efficiency and transparency of management and thereby increase the market value of firms.