국제회계기준의 의무도입이 기업의 자기자본비용의 변화에 미치는 영향에 관한 설증적 연구

Empirical Evidence on the Relationship between Mandatory Adoption of IFRS and the Cost of Equity Capital

This paper examines whether the mandatory adoption of International Financial Reporting Standards (IFRS) in Korea in 2011 reduces the cost of equity capital. Using a sample of 2,765 firm-year observations in 819 firms during the 2001 to 2012 period I find that the sample finns have experienced the significant reduction in the cost of equity capital over pre- and post-adoption periods. It can be supporting evidence that adipting IFRS will enhance comparability of financial statements, therefore provide advantage of capital investment opportunities. This paper is the first attempt to explore the functional relationship between the mandatory adoption of IFRS and firms cost of capital in Korean capital market. The results from this sutdy have implications for investors and standard setters in enhancing their understanding of accounting convergence and its impact in the capital market.