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http://dx.doi.org/10.14400/JDC.2019.17.3.153

Investment Tendency of Foreign Investor and Accounting Conservatism  

Ji, Sang-Hyun (Division of Business & Commerce, Baekseok University)
Ryu, Ye-Rin (Management Research Institute, Pusan National University)
Publication Information
Journal of Digital Convergence / v.17, no.3, 2019 , pp. 153-160 More about this Journal
Abstract
This paper analyzes the impact of investment tendency of foreign investor on accounting conservatism. We use the sample of 1,527 firm-year Korea listed companies belonging to non-financial corporate sector during 2014-2016. The results of empirical analyses show that investment horizons of foreign investors has a positive relevance with accounting conservatism. This result indicates that the firm have a long-term foreign investors has a good quality of accounting earning than the firm have a short-term foreign investors. This study that verified the relevance between investment tendency of foreign investor and accounting conservatism is expected to provide useful information by suggesting the need for more incentive for the long-term foreign investors. And we expect a follow-up study focused on the discriminative effect of investment tendency of foreign investor on accounting policy.
Keywords
Foreign investor; Investment tendency; Investment horizons; Investment-turnover; Accounting conservatism;
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Times Cited By KSCI : 3  (Citation Analysis)
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