이사회 내 경제적 유대와 투자효율성

[Purpose] The purpose of this study is to demonstrate that potential economic－ties within the board encourage managerial opportunistic behaviors by verifying the effects of economic－ties between internal and external directors, and their degree on investment efficiency. [Methodology] This study analyzed the full sample of 6,755 companies and the reduced sample of 1,998 companies traded in the KOSPI market from 2011 to 2022. Multiple regression models and logistic regression models were estimated to examine the relationship between directors’ economic ties and their degree in relation to investment efficiency. [Findings] The study shows that there is a significant and negative relationship between directors’ economic ties and their degree, and investment efficiency. These results suggest that directors’ economic ties encourage managers’ opportunistic overinvestment, making investment less efficient. In addition, there is a significant and positive relationship between the economic－ties of directors and its degree, and the managerial tendency of overinvestment. These results indicate that the economic－ties and its degree create an environment for managers to pursue private interests, leading to opportunistic overinvestment. [Policy Implications] This study presents evidence that potential economic ties between internal and external directors decrease investment efficiency and suggests that a reasonable compensation scheme should be established for outside directors who are economically independent of internal directors.