기업지배구조가 유상증자와 이익투명성에 미치는 영향

This study investigates the effect of seosoned equity offerings (hereafter seo) on earnings transparency. Prior research reports that firms conducting seo manage earnings(Choi and Paek 1999; Yoon and Lee 2001; Ahn et al. 2015). Based on prior research results, we predict and investigate that the earnings transparency of firms conducting seo wil be lower. First of all, we examine the earnings transparency of firms conducting seo versus non-conducting seo, and investigate the association between seo and earnings transparency and the extent to which the association is affected by corporate governance. Specifically, the period of samples is from 2001 to 2013. We use Cheng and Subramanyam(2008) as a proxy of earnings transparency and use the foreign ownership, large shareholders ownership as corporate governance measure. The empirical results of this study are as follows. First, the relation between seo and earnings transparency is statistically significant and negative(-). This means firms conducting seo have lower earnings transparency than firms non-conducting seo. Second, the interaction variable between seo and corporate governance is statistically significant and positive(+) on earnings transparency. Accordingly, the effect of seo and corporate governance on earnings transparency was found to increase with firms for a good corporate governance. These findings show that the corporate governance works as a mechanism to reduce the negative effect of seo . This study focused on seo as a determinant of earnings transparency downgrading, directly tests the effect of corporate governance on the association between seo and earnings transparency in Korea, providing empirical support that a good corporate governance reduces the negative effect of seo. The results of this study are expected to provide significant implications to executives and investors and regulators as well.