ABSTRACT
The importance of corporate disclosure practices has been increasing with the internationalization of capital markets and business activities (Saudagaran and Biddle 1992, Wallace and Nasser 1995). Their significance is well reflected in the recent revision of the Korean Financial Accounting Standards (KFAS hereafter) that occurred in South Korea (Korea hereafter), following the country’s 1997 economic crisis. The current KFAS particularly stresses the importance of comparable and reliable financial statements produced by Korean companies in raising capital on both domestic and international capital markets (KFAS 1998).
