회계투명성과 자기자본비용의 관련성에 관한 연구- 한국회계학회의 회계투명성평가지수를 중심으로 -

This study empirically examines the association between the accounting transparency rank presented by the Korean Accounting Association (KAA) in 2011 and the cost of equity capital. The rank was developed based on disclosures from the 2010 annual reports and audit reports of the Korea Stock Exchange and KOSDAQ listed firms. This rank was the first effort to develop a comprehensive index presenting the variations of accounting opacity across listed firms in Korea. Previously, the KAA has identified a few firms practicing transparent disclosure in order to give best practices awards. Our study considers various and comprehensive factors that determine accounting opacity from the perspectives of information users and examines the association between accounting transparency and one of the most important reasons motivating the transparency of accounting information, i.e., reduction in cost of equity capital. Using 224 sample firms with accounting transparency ranks, our study shows that rank is negatively associated with cost of equity capital. The results also show that cost of equity capital is higher when there are factors that cause accounting opacity. The results are robust after controlling for the endogeneity of analysts following. The results are not only statistically significant but also economically important. The results suggest that the effort in improving accounting transparency or in reducing accounting opacity on both firm and national levels is important to achieve economic equity finance and therefore reduce the Korea discount.