The Effect of the National Pension Service’ Activism on Earning Management after Adoption of the Korea Stewardship Code (스튜어드십코드의 도입후 주주권 행사가 이익조정에 미치는 영향 - 국민연금의 투자기업을 중심으로 -)

KWON YEKYUNG (권예경)

doi:10.9708/jksci.2022.27.01.183

The Effect of the National Pension Service’ Activism on Earning Management after Adoption of the Korea Stewardship Code

Journal of The Korea Society of Computer and Information
Abbr : JKSCI
2022, 27(1), pp.183-191
DOI : 10.9708/jksci.2022.27.01.183
Publisher : The Korean Society Of Computer And Information
Research Area : Engineering > Computer Science
Received : November 26, 2021
Accepted : December 27, 2021
Published : January 28, 2022

KWON YEKYUNG ¹

¹동서대학교

Accredited

ABSTRACT

The Korea Stewardship Code ‘Principles on the Fiduciary Responsibilities of Institutional Investors’ was introduced in 2016 and the National Pension Service adopted it in 2018. the National Pension Service casted ‘dessent’ vote on the agenda which is able to reduce the ownership interest of shareholder in general meeting. This paper examines whether ‘dissent’ voting affected on the ownership interest of shareholder or not. The ‘dissent’ vote on the agenda are related to revision artical of corperation, appointment or compensation of director and auditor, approval of financial statements ect. The proxies of earnings management is discretionary accruals calculated by modified Jones model. The control variablies are size of assets, liabilities per assets, returns on assets. The results of this study are as followings. First, the ‘dissent’ voting on the agenda are related to revision artical of corperation, M&A, approval of financial statements ect. are not significant because their sample size is too small, Second, the ‘dissent’ voting on appointment of director and auditor affected on reduction of discretionary accruals. So the National Pension Service activism shall affect on increasing the ownership interest of shareholder. Third, the ‘dissent’ voting on compensation of director and auditor is not affected on reduction of discretionary accruals. This results show that ‘unconditional dissent voting’ on the agenda in general meeting is not to reduce the ownership interest of shareholder.

KEYWORDS

Stewardship Code, ‘dissent’ voting, Earnings management

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* References for papers published after 2023 are currently being built.

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This paper was written with support from the National Research Foundation of Korea.

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Journal of The Korea Society of Computer and Information 2023 KCI Impact Factor : 0.65

The Effect of the National Pension Service’ Activism on Earning Management after Adoption of the Korea Stewardship Code

ABSTRACT

KEYWORDS

Citation status

* References for papers published after 2023 are currently being built.

Journal of The Korea Society of Computer and Information 2023 KCI Impact Factor : 0.65

The Effect of the National Pension Service’ Activism on Earning Management after Adoption of the Korea Stewardship Code

ABSTRACT

KEYWORDS

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* References for papers published after 2023 are currently being built.