K-IFRS 도입 이후 기업지배구조와 기업규모가 외국인 투자에 미치는 영향

This paper investigates domestic 1,832 firm-years listed on KOSPI between 2009 and 2013. The purpose is to identify whether foreign investments increases after IFRS adoption and whether firm size differently affects foreign investments. Also, as corporate governance has recently become a key component as part of the corporate sustainability management, this study explores whether corporate governance affects foreign investments. Based on the analysis, first, it shows that foreign investments significantly increase after K-IFRS adoption. This can be attributed to the reduction in both costs for information processing by foreign investors and information asymmetry between managers and foreign investors. Second, apart from IFRS adoption, foreign investments significantly increase as the quality of corporate governance are higher. All of the governance factors such as protection of shareholders' rights, board characteristics, disclosure, audit characteristics, and business performance distribution. As the corporate governance efficiently controls the manager, information asymmetry between the management and investors decreases, attracting more foreign investments. Third, with regard to individual item among corporate governance items companies with more functions of their board of directors are related to more foreign investments after K-IFRS adoption. Fourth, the effect of a firm size on foreign investments reduces after K-IFRS adoption. This means that the characteristics of IFRS affect SME companies more than large companies, indicating that information asymmetry decreases much more for the former.