최대주주의 지배력과 횡령 위험 간의 비선형 관계 검증

In recent years, the surge in fraud cases has resulted in substantial economic damage to both companies and the market. Various governmental and policy agencies have responded to this issue by proposing various causes and solutions; however, empirical research in this area remains limited. As a result, we aim to analyze the impact on the risk of fraud in terms of corporate governance, specifically focusing on the largest shareholder’s shareholding structure. To delve into this analysis, we have collected fraud disclosures for Korean-listed companies (KOSPI & KOSDAQ) spanning from 2013 to 2021 to investigate whether there is a nonlinear relationship between the largest shareholder’s stake and the risk of fraud. Additionally, we aim to determine whether the nonlinear relationship between the largest shareholder’s stake and fraud risk changes depending on the effectiveness of the governance structure. Our empirical analysis has yielded intriguing results. We reveal a significant nonlinear relationship between the largest shareholder’s stake and fraud risk. Furthermore, we provide empirical evidence that the nonlinear relationship between the largest shareholder’s stake and fraud risk loses significance when the independence of outside directors is strong. Finally, we perform additional analyses, including balanced samples, propensity score matching, and lagged variables regression, which yield research results consistent with existing findings. These results suggest that the control of the largest shareholder can be a crucial determinant of fraud risk, and the introduction of the NEW ISA (International Standard on Auditing) is expected to offer significant implications for auditors in evaluating a company’s unique risk and control risk.