외국은행 대출관계와 기업의 이익조정

This paper empirically investigate how the foreign bank relations affect firms’ earnings management. We analyzed all non-financial listed companies in Korea between 2004 and 2011. These foreign banks build different relations with the firms than do the domestic banks in many ways including lending relations. Such approaches by foreign banks give a motivation for the firms to improve their credit scores by, for example, increasing earnings. But few studies have empirically investigated the relationship. The results showed a positive impact of foreign bank – firm relations on earnings management. In addition, foreign bank relations of greenfield entry type have more positive impact on firm's earnings management than do foreign bank relations of M&A entry type. The results might indicate a weak monitoring by foreign banks due to information asymmetry and the inability to detect firms’ earnings management that are created by weak relations with the firms. The results of the study could contribute to existing accounting literature on (1) foreign banks, (2) firm-bank relations, (3) earnings management, and (4) government policies.