기타지주회사의 이익의 질과 타인자본비용의 관계 = Relation between Earnings Quality and Cost of Debt of Other Holding Companies

다국어 초록 (Multilingual Abstract)

This study examines relation between earnings quality and cost of debt of holding companies out Monoploy Regulation and Fair Trade Act(hereinafter other holding companies). For this purpose, we compare the difference of cost of debt between other holding companies and in(called “MRFTA holding companies”) and investigate change of value relevance after transition into holding companies respectively.
Samples are selected among listed holdings companies from 2011 to 2021 and number of samples is 177 per year, which consist 106 holdings out MRFTA and 71 holdings in MRFTA per year, and 1,770 firm-year observations.
The results are as follows. First, cost of debt of other holding companies is significantly higher than that of MRFTA holding companies in terms of discretionary accruals. Second, cost of debt of the other holding companies is significantly increased after transition into holding company. Third, as the result of additional DID analysis, level of cost of debt of other holding companies is significantly higher than that of other casesAs the contribution of the precedent researches, this research examines level of cost of debt of other holding companies in Korea for the first time. The results of this research emphasize creditors perceive low earnings quality of other holding companies determining cost of debts.