외국인투자자의 특성과 경영진단의견서의 공시품질:외국인대주주의 역할을 중심으로

According to recent research, the Korean firms’ Management Discussion and Analysis (MD&A) disclosure quality is very poor and never meets the expectation of investors or regulators (Lee et al., 2013). On the other hand, for the firms with external shareholders, who understand the importance of information contained in MD&A and have enough control power to ask for high quality information, managers have incentive to increase voluntary disclosure quality. In this regards, this study investigates whether the foreign blockholder’s equity holdings actually cause a firm to increase MD&A disclosure quality using a large sample of firms listed Korea Exchange in 2010～2011. Foreign blockholder’s are defined to have more than 5% of foreign investors’ ownership and we measure Korean firms’ MD&A disclosure quality by checking the degree of compliance with the MD&A guideline suggested by Korea Financial Supervisory Service (FSS). As empirical result, we find that the magnitude of MD&A total disclosure score is significantly greater for the firms with foreign blockholders than the firms without foreign blockholders. In addition, the magnitude of MD&A disclosure score is positively associated with foreign blockholders’ ownership. This results suggest that foreign blockholders plays important monitoring role on firms’ voluntary disclosure practice, and have managers provide more improved information through MD&A.