기업규모에 따른 공정공시제도 시행효과에 관한 연구

Abstract

This study analyzed xamines the effects of the Fair Disclosure Regulation (FD's, hereafter) in Korea stock markets. The FD’s states that firms may not privately disclose information to selected investors before disclosing it to general investors. The FD’s prohibits company officials from disclosing market sensitive information to selected financial analysts or big investors before making it public. The FD’s purports to reduce information asymmetry in the stock market, however, apprehend that the Regulation could have negative effects on the stock market. They argue that firms may take advantage of the Regulation as a means of company promotion by disclosing non-financial information, instead. But the FD’s might end up encouraging the increase only in the volume of disclosures containing unimportant or company-promotional contents while hurting the quality of information. This may confuse investors in evaluating firm values, consequently weakening investors' trust in the market. We investigate a change in information production by analysts. The major findings and suggestions can be summarized as follows. First, we find that the FD’s had a adverse effect on small firms in Korean stock market. Second, we test whether the investor recognition hypothesis can explain the small-firm effect. As a result of the FD’s, many small firms lost analysts coverage, and thus are likely to also have lost recognition among investors. Third, we find the information asymmetry problem which the chilling effect for small firms caused the part of small-firm effect. Finally, it is suggested that The FD’s in Korea stock markets is being misused as a promotional tool of small firms.