이사책임감면제도 도입이 신용등급에 미치는 영향

Abstract

[Purpose] This study investigates the impact of the introduction of the director’s Liability Limitation Provision(hereafter LLP) in firms on credit ratings. Furthermore, it examines how such impacts vary depending on the ownership stake and investment horizon of the National Pension Fund. [Methodology] We conduct empirical analysis using data from companies traded on the Korea Exchange from 2012 to 2017. The key findings are as follows. [Findings] Firstly, we find that firms introducing LLP tend to have lower credit ratings compared to those that do not introduce it. Secondly, when the National Pension Fund holds a substantial ownership stake (5% or more), LLP firms tend to have higher credit ratings than those that have not. Finally, when the National Pension Fund’s investment horizon is three years or more, there is a positive relationship between the introduction of LLP and credit ratings；however, such a relationship is not significant when the investment horizon is less than three years. [Implications] These results imply that the introduction of LLP can have a negative impact on corporate governance. Furthermore, it highlights the role of shareholder activism by the National Pension Fund, in mitigating these negative impact.