ESG평가지표와 외국인 지분율이 회계보수주의에 미치는 영향

[Purpose] Using the ESG scores from the Korean corporate governance service and foreigner’s share, this paper examines the relation between ESG, foreigner’s share and accounting conservatism. The improvement of corporative governance will have a positive effect on the accounting conservatism by improving firm’s transparent management. As foreigner’s shares increase, monitoring and directing for firm’s operations will be high, having a positive effect on the conservatism. [Methodology] This study used 2011－2017 listed firms and deleted 289 observations which do not satisfy the study’s purpose. The final 4,618 observations and was used for the analysis. The data are retrieved from Kis－Value and DART. [Findings] As ESG score increases, the firm’s accounting conservatism increases. This means high ESG score firm uses firm’s resources for the owner’s interests. The relation between accounting conservatism and foreigner’s shares is positive. This means foreign investors efficiently monitor management and reduce managerial entertainment. This means that inducing foreigners to buy firms’ equity may improve conservatism of accounting by reducing agency costs. [Implications] Although there were many changes to reform corporative governance, those institutional reforms may have been unsuccessful to improve Korean corporate governance. So, the results of this paper will give some implication for improving those institutional reforms.