A Study on the Subsequent Changes in Corporate Governance after the Detection of Misappropriation and Breach of Trust

??? ????????? ???????????? ?????? ??????????????????????????? ??????????????? ????????? ????????? ??????????????? ??????????????? ????????? ?????? ??????. ????????? ????????? ????????? ??????????????? ?????????????????? ??? ???????????? ?????? ???????????? ???????????? ?????? ????????? ???????????? ?????? ?????????. ???????????? ?????? ????????? ??????????????? ???????????? ????????? ????????? ?????????????????? ???????????? ????????? ???????????? ?????? ?????? ????????? ?????? ????????????. ?????? ?????????????????? ?????????????????? ????????? ????????????????????? ?????? ???????????? ???(???)?????? ???????????? ????????? ????????? ????????? ???????????? ??????. ?????????, ?????? ???????????? ???????????? ?????? ??????????????? ????????? ????????? ?????????, ?????? ??????????????? ????????? ?????? ????????? ?????? ????????? ????????? ???????????? ????????? ??? ???????????? ???????????? ??????. ?????? ????????? ???????????? ?????? ????????? ????????? ????????? ??????????????? ????????????, ????????? ??????????????? ?????? ?????? ????????? ?????? ?????????????????? ?????????. ??? ????????? ??????????????? ????????? ?????? ???????????? ????????? ???????????? ????????? ???????????? ????????? ??? ??? ?????? ?????????. ??? ????????? ????????? ????????? ??????. ??????, ?????????????????????????????? ????????? 3????????? ?????? ??????????????? ??????????????????????????? ???????????? ?????? ??????????????? ???????????? ?????? ????????? ????????????. ????????? ????????? ??????????????? ?????? ???????????? ?????? ??????????????? ????????????????????? ???????????? ???(???)?????? ???????????? ????????? ????????????. ??????, ??????????????? ????????????????????? ???????????? ?????? ???????????? ????????????????????? 2 ?????? ????????? ????????? ???????????? ????????? ????????????. ????????? ????????????????????? ????????? ????????? ????????? ????????? ???????????? ??????????????? ???????????? ????????????. The purpose of this study is to examine empirically the subsequent changes in corporate governance after fraud detection. In fact, the expectation that a fraud firm is likely to improve corporate governance is not self???explanatory. Whether a firm will improve corporate governance after fraud detection is determined by the comparison of the benefits to be obtained and the costs to be spent. Prior studies based on the U.S. firms provide the evidence that fraud firms generally expect the net benefits from the improvement of corporate governance to be positive. However, considering the properties of ownership structure which Korean firms establish, it is unclear that the evidence from prior studies can be consistently extended to the prediction for Korean firms. Despite the necessity of doing research on Korean firms, little research has been performed up to now. This study will help fill the gap between the results of prior studies and the Korean domestic business practice. The results of this study are as follows. First, the degree of corporate governance improvement by fraud firms over three subsequent periods after fraud detection is statistically significantly higher than that by non???fraud firms. This implies that fraud firms in Korea also expect the net benefits from the improvement of corporate governance after fraud detection to be positive. Second, it is found that it takes more than two subsequent periods that the quality of corporate governance of fraud firms is significantly improved, compared to that of non???fraud firms. This shows that the improvement of corporate governance is the restructuring process which requires considerable time and efforts