외부대규모기관투자자가 재무분석가의 이익예측오차에 미치는 영향

The purpose of this study is to investigate the monitoring role of institutional investors on analysts’ earnings forecast errors in Korea. To meet this objective, we examine whether the existence of institutional investors as independent outside block-holders which have the incentive and expertise to independently monitor the firm managers decreases analysts’ earnings forecast errors. Analyzing a comprehensive sample of 6,550 non-financial firm-year data listed on the Korea Stock Exchange from 2003 to 2014, we find that the existence of institutional investors as independent outside block-holders has a negative impact on analysts’ earnings forecast errors. While existing studies consider a institutional investor just a monitoring entity as a whole, this study classifies independent block shareholders and subsequently analyzes each of their impacts on analysts’ earnings forecast errors. In this respect, this study offers Korean policy makers in developing the opportunities to build effective corporate governance system using the types of institutional investor’s monitoring. In addition, the study provides them with an essential prerequisite for developing an effective monitoring of institutional investors.