외국인 임원 및 지분율이 주가붕괴에 미치는 영향

This study investigates whether the foreign director affects the stock price crash risk. Using the 4,381 firm－year observations that are listed on the KOSPI over the period from 2006 to 2014, we don’t find a significant relation between the ownership of foreign investors and stock price crash risk, between the presence of a foreign director in the board and stock price crash risk. However, we find a negative relationship between the foreign director and stock price crash risk when firms have a higher portion of foreign investor’s ownership. These results suggest that a foreign director plays a significant role in monitoring managers as well as advising them. To check the robustness of the results, we conduct several sensitivity tests. We use the propensity score matching and factor analysis to control the potential endogeneity issues and the sample section bias. We find similar results for these sensitivity tests. This study has contributions to the extant literature. First, we provide the empirical evidence on the relation between a foreign director and stock price crash risk by using the hand－collected data. Second, we believe that our research questions are fruitful and in a timely manner in that there is a growing interest not only in the literature but also, in business practice regarding the role of foreign directors.