국제회계기준의 의무도입이 기업의 자기자본비용의 변화에 미치는 영향에 관한 실증적 연구

This paper examines whether the mandatory adoption of International Financial Reporting Standards (IFRS)in Korea in 2011 reduces the cost of equity capital. Using a sample of 2,765 firm-year observations in 819firms during the 2001 to 2012 period. I find that the sample firms have experienced the significant reductionin the cost of equity capital over pre- and post-adoption periods. It can be supporting evidence that adiptingIFRS will enhance comparability of financial statements, therefore provide advantage of capital investmentopportunities. This paper is the first attempt to explore the functional relationship between the mandatoryadoption of IFRS and firms’ cost of capital in Korean capital market. The results from this sutdy haveimplications for investors and standard setters in enhancing their understanding of accounting convergence andits impact in the capital market.