배당과 외국인 투자자 관련성 = Dividend Policy and Foreign Shareholdings: Evidence from Korea

다국어 초록 (Multilingual Abstract)

This study provides an in-depth examination of the structural relationship between foreign ownership and corporate dividend policy using firm-level data from companies listed on the KOSPI and KOSDAQ markets over the period 2011–2023. Building upon the mixed evidence documented in prior literature, this research reassesses the role of foreign investors in Korea’s rapidly evolving capital market environment. Earlier studies suggest that foreign investors can enhance corporate governance by strengthening managerial monitoring, reducing information asymmetry, and promoting more shareholder-friendly payout policies. However, concerns have also been raised that certain groups of foreign investors—particularly those with short-term or speculative investment horizons—may pressure firms to adopt payout policies that could potentially restrict long-term investment capacity. These divergent views underscore the need to analyze foreign investors’ responses to dividend policies within a more comprehensive empirical framework that incorporates governance mechanisms, market transparency, and audit quality. To address these issues, this study develops a multi-dimensional empirical approach. Specifically, multiple regression models are employed to test how dividend payout ratios (DIVPAYOUT) and dividend yields (DIVYIELD) influence foreign ownership (FOR), while controlling for profitability, leverage, operating cash flows, growth opportunities, stock return volatility, firm size, industry fixed effects, and year fixed effects. Recognizing the critical role of financial reporting credibility in foreign investors’ decision-making, the analysis further incorporates the moderating effect of audit quality, proxied by the presence of Big Four auditors. This allows the study to investigate whether high-quality external assurance enhances the signaling value of dividend-related information. The results reveal several important insights. First, dividend yield exhibits a strong, positive, and statistically significant association with foreign ownership across all empirical specifications. This suggests that higher dividend yields provide a credible signal of cash-flow reliability and financial soundness, attributes that are particularly valued by foreign investors operating in markets where information asymmetry is relatively high. Second, when a firm is audited by a Big Four accounting firm, the relationship betweendividend yield and foreign ownership becomes even stronger. This indicates that audit quality amplifies the credibility of dividend signals by reducing perceived information risk and enhancing investor confidence in the accuracy of reported financial information. Third, the dividend payout ratio does not display a significant relationship with foreign ownership. This finding implies that payout ratios—being more closely tied to internal financing policies and managerial discretion—may not carry the same informational content as dividend yields from the perspective of foreign investors. Taken together, these findings support the Outcome Model, which views dividends as a governance mechanism that mitigates agency conflicts by distributing excess cash and reducing managerial opportunism. The interaction between dividend policy and audit quality demonstrates that these governance mechanisms are not independent; rather, they operate in complementary ways to shape foreign investors’ assessments of firm quality. Beyond theoretical contributions, this study offers meaningful practical implications. Firms seeking to attract or retain foreign investors may benefit from adopting dividend policies that convey stable and transparent cash-flow expectations, particularly when combined with high-quality external audits. Policymakers may also leverage these findings when designing regulatory frameworks aimed at strengthening the investment environment for global capital, promoting audit market competitiveness, and improving disclosure s...