수시공시품질의 특성과 타인자본비용

This study examines the relationship between characteristics of timely disclosure quality and cost of debt capital. Performing factor analysis, we classify three common factors for characteristics of timely disclosure quality such as agency problems, incentive alignment and monitoring incentives. In addition, we measure cost of debt capital by the ratio of interest expense to interest-bearing debt and bond ratings assigned by Korea Investors Service (KIS), one of the Korean major bond-rating firms. We select an initial sample of 267 non-financing listed firm-year data designated as unfaithful disclosure for the period 2002-2012. Using criteria such as year, industry and firm size, we match the initial sample with a control sample not selected as unfaithful disclosure firms. This sample selection procedure yields an final sample of 534 firm-year observations. To test our hypothesis of the effect of firms` characteristics of timely disclosure quality on cost of debt financing, we carry out OLS regressions. Our main empirical findings of this study are as follows: First, the factor for agency problems decreases bond ratings, whereas it increases the ratio of interest expense to interest-bearing debt. Second, the factor for incentive alignment cuts bond ratings. Third, although the factor for monitoring incentives increases bond ratings, it decreases the ratio of interest expense to interest-bearing debt. Finally, while the factor for incentive alignment has the greatest influence on bond ratings, the factor for agency problems has the most powerful impact on the ratio of interest expense to interest-bearing debt. These empirical findings of the study indicate that timely disclosure quality shortens cost of debt capital and characteristics of timely disclosure quality have different impacts on cost of debt capital.