Proper

Abstract

This study examines the relation between the short selling and earnings management of Chaebol firms with high ownership concentration. Literature shows that there is significantly negative relationship between the threats of short selling and earnings management and prove that short selling discipline earnings management. And the literature of earnings management of Chaebol firms shows that the chaebol firm have different earnings management attitude than that of non-chaebol firms., Empirical result is as follow. There is a significantly positive (+) relationship between short selling and earnings management of chaebol firm with high disparity. It implies that Chaebol firms with high ownership control disparity manages their earnings when they experience price down by short selling. This finding implies that the discipline effect of short selling may be dependent on firm characteristics as the corporate governance structure.