사업보고서 기재정정이 신용등급에 미치는 영향 = The Effect of Corrections of Annual Reports on Credit Ratings

다국어 초록 (Multilingual Abstract)

[Purpose] This study analyzes the impact of corrections in annual reports on credit ratings. Credit rating agencies are likely to assign lower credit ratings when the quality of disclosures decreases due to corrections in annual reports, reflecting the investor’s adverse selection risk and information risk. Additionally, the study examines whether the impact of corrections in annual reports on credit ratings varies by market affiliation and financial soundness.
[Methodology] Empirical analysis was conducted on a sample of 2,608 firm－year observations of companies listed on the KOSPI and KOSDAQ markets from 2013 to 2023.
[Findings] The results indicate that corrections of annual reports have a significant negative relationship with credit ratings. This implies that when there are corrections in the annual reports used by credit rating agencies to assess credit ratings, they consider adverse selection risk and information risk, leading to lower credit ratings. Additionally, the negative relationship between corrections of annual reports and credit ratings is found to be stronger for KOSPI firms. For companies in the KOSPI market, credit rating agencies place high value on the quality of disclosures；however, when the quality of disclosures decreases due to corrections of annual reports, it significantly undermines their trust, resulting in lower credit ratings. Furthermore, the negative relationship between corrections of annual reports and credit ratings is also strengthened for firms with lower financial soundness. When companies with low financial soundness have corrections in their annual reports, the quality of disclosures is further diminished, leading credit rating agencies to reflect this credit risk by assigning lower credit ratings.
[Implications] This study may inform regulatory policies aimed at managing companies with frequent corrections of annual reports and relevant environmental and characteristic factors. Additionally, it suggests that investors and creditors should pay sufficient attention to companies where corrections of annual reports occur frequently.