경영자의 과대확신이 회계이익의 질 및 배당과외국인지분율 간의 관련성에 미치는 영향

[Purpose]This study examines the relation between the managerial overconfidence and the foreign equity ownership. This research hypothesis is that the managerial overconfidence is not related with foreign equity ownership based on mixed findings on decisions of foreign investors. [Methodology]The sample consists of non－financial(3,702) listed KOSPI firm with the managerial overconfidence from 2004 to 2013. We measure the various managerial overconfidence variable based on Schrand and Zechman(2012), Hwang and Cha(2015) and Ryu and Kim(2015)’s methodology. And we use one－year－average foreign equity ownership(t＋1 foreign equity ownership) as proxies for foreign equity ownership. [Findings]We examine the coefficient for interaction term(‘managerial overconfidence ×earnings quality’ and ‘managerial overconfidence×cash dividend’) using multiple regression. After the controlling for variable to related foreign equity ownership, the regression coefficient for the ‘managerial overconfidence×cash dividend’ shows statistically significant positive sign. But the regression coefficient for the ‘managerial overconfidence×earnings quality’ is not significant. The results suggest that, managerial overconfidence only affect the relation between earnings quality and foreign equity ownership. [Implications]This research is expected to provide empirical data that the foreign investor considers the management characteristics before their portfolio selection. These results may help policy makers better understand the relation between the managerial overconfidence and the making－decision of foreign investors.