주주는 기업의 감사위원회를 구조화함에 있어 경영자의 성향을 감안하는가?

Abstract

Based on the fact that the audit committee is the mechanism that most directly influences managers' financial reporting behavior, we aim to analyze whether shareholders strengthen the role of the audit committee in response to negative financial reporting by overconfident managers.
 For the empirical analysis, we use a sample of KOSPI/KOSDAQ-listed firms from 2016 to 2021, and the empirical results are as follows. First, we find a significant negative relationship between managerial overconfidence and audit committee size. This result indicates the limited role of shareholders in enhancing the role of audit committees to mitigate the negative financial reporting tendency of overconfident managers and reflects the incentives of managers to reduce the role of audit committees.
 Second, we also find a significant negative relationship between managerial overconfidence and audit committee independence. This result also reflects the limited role of shareholders in enhancing the role of audit committees to mitigate the negative financial reporting propensity of overconfident managers, and the incentives of managers to reduce the role of audit committees.
 The contributions of this study are as follows. First, we expect our study to improve the understanding of various capital market participants about the behavior of overconfident managers in relation to negative financial reporting. Second, our study extends the literature on the determinants of audit committee size and independence.