이익조정이 고유위험과 주가의 임의보행 및 가격결정의 지연도에 미치는 영향: 외국인 지분율의 영향력을 중심으로

This study shows that the idiosyncratic volatility, the distance from random walk of stock price, and the degree of the delay in reflecting market information into stock price increase with the more discretionary accruals from 1999 to 2023 in the Korea stock market. This means that earnings management harms the efficiency of stock-pricing. It is also found that the negative impact of such earnings management is much lessened as foreign ownership increases. This study suggests that the negative impact of such earnings management on the stock market can be significantly mitigated if there are external monitors such as foreign investors and their influence increases, even if a firm inflates its accounting earnings more severely. These findings are robust under the GMM dynamic panel analysis (Arellano and Bond, 1991), and are also robust by separating the research sample into small sub-samples such as immediately before and after the 2008 global financial crisis. However, after the pandemic, such findings as negative impacts of earnings management and positive impacts of foreign ownership are not found in this paper from 2020 to 2023. This paper has a policy implication in that negative impacts of earnings management can be greatly mitigated if there exist strong external monitors from “a free market” such as foreign investors without intervention by financial authorities.