• Title, Summary, Keyword: Earning Management

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Analysis of Vulnerable Cooperation in Internal Control System on Characteristics and Earning Management (내부회계관리제도 지적기업의 특성과 이익조정에 관한 분석)

  • Kim, Jin-Sep
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.10 no.6
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    • pp.1353-1360
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    • 2009
  • This study examines the effects of internal control system and Analysis of characteristics and Earning management in Vulnerable Cooperation. During research period 2005${\sim}$2007, Purpose of this study is to examines whether financial characteristics has exist or not. Second, Earning management also. As a result of analysis are as follows, First T-test and logistic regression has found explanatory with stastical significance about CURRENT, RNPS, and DEPT. Second, DA of Vulnerable Cooperation is significantly higher than Normal cooperation.

A Study on Earnings Management in Companies Achieving Sustainability: Accruals-based and Real Earnings Management

  • JI, Sang-Hyun;OH, Han-Mo;YOON, Ki-Chang;AN, Sang-Bong
    • Journal of Distribution Science
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    • v.17 no.9
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    • pp.103-115
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    • 2019
  • Purpose - We attempted to verify the level of ethics of firms achieving sustainable management from the aspect of reliability of accounting information. Specifically, we evaluated the effects of sustainable management on accruals-based earning management (AEM) and real earning management (REM). Research design, data, and methodology - We employed the issuance of sustainability reports in addition to the indices of social responsibility and environmental-management evaluation of the Korea Corporate Governance Service in order to measure sustainability management. AEM was measured using discretionary accruals and calculated using the operant Jones model. Specifically, REM was measured using the methodology suggested by prior studies. The sample of our study consisted of 1,418 years of public listed firms in the Korea Stock Exchange from 2015 to 2017. Results - First, the level of AEM in firms achieving sustainable management was lower than the other. Second, the level of REM in these firms was lower than the other. Nonetheless, another analysis showed that the level of governance control affects the level of earning management and that the levels of AEM and REM were generally lower in firms achieving sustainable management than the others. Conclusions - We expected that firms achieving external ethics tend to have a higher level of internal ethics than others.

Study on the Relationship between Capital Structure and Earning Management in the Korean Shipping Companies (해운기업의 자본구조와 이익조정 간의 관계에 관한 연구)

  • Lee, Sung-Yhun;Ahn, Ki-Myung
    • Journal of Navigation and Port Research
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    • v.41 no.4
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    • pp.235-242
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    • 2017
  • Earnings management is defined as an intentional act during the financial reporting process or a manager's choice of accounting policies to avoid earnings decreases or obtain some private gains. Shipping firms have a highly debt-intensive capital structure and a significant motivation in earnings management to avoid failure of a Debt Covenant. From this point of views, this paper tries to determine the relationship between the capital structure and discretionary accruals estimated using the re-modified Jones model (1995). The sample used to test the research models is made up of 87 Korean shipping firms during the period from 2007 to 2015. A histogram analysis, t-test and FGLS confirm the possibility of using earnings management, and it proved that Korean shipping firms manage their earnings to avoid financial loss. An analysis of the relationship between the capital structure and earning managements, shows it is difficult to support the Debt Covenant, shown as a negative relationship between the debt ratio and debt maturity as shipping firms' capital structure and discretionary accruals as earning management variable. An additional analysis presents a negative relationship between previous debt maturity and discretionary accruals, and the possibility of earning management in a highly increased debt ration group.

Development of the Financial Account Pre-screening System for Corporate Credit Evaluation (분식 적발을 위한 재무이상치 분석시스템 개발)

  • Roh, Tae-Hyup
    • The Journal of Information Systems
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    • v.18 no.4
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    • pp.41-57
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    • 2009
  • Although financial information is a great influence upon determining of the group which use them, detection of management fraud and earning manipulation is a difficult task using normal audit procedures and corporate credit evaluation processes, due to the shortage of knowledge concerning the characteristics of management fraud, and the limitation of time and cost. These limitations suggest the need of systemic process for !he effective risk of earning manipulation for credit evaluators, external auditors, financial analysts, and regulators. Moot researches on management fraud have examined how various characteristics of the company's management features affect the occurrence of corporate fraud. This study examines financial characteristics of companies engaged in fraudulent financial reporting and suggests a model and system for detecting GAAP violations to improve reliability of accounting information and transparency of their management. Since the detection of management fraud has limited proven theory, this study used the detecting method of outlier(upper, and lower bound) financial ratio, as a real-field application. The strength of outlier detecting method is its use of easiness and understandability. In the suggested model, 14 variables of the 7 useful variable categories among the 76 financial ratio variables are examined through the distribution analysis as possible indicators of fraudulent financial statements accounts. The developed model from these variables show a 80.82% of hit ratio for the holdout sample. This model was developed as a financial outlier detecting system for a financial institution. External auditors, financial analysts, regulators, and other users of financial statements might use this model to pre-screen potential earnings manipulators in the credit evaluation system. Especially, this model will be helpful for the loan evaluators of financial institutes to decide more objective and effective credit ratings and to improve the quality of financial statements.

The Relevance between Investor Relation and Book-Tax Difference Variability (기업설명회와 회계이익-과세소득 차이 변동성 간의 관련성)

  • Kim, Jin-Sep
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.18 no.11
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    • pp.637-643
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    • 2017
  • This study analyzed the Quality of Accounting Earning of Investor Relations(IR). For this, we utilized Book-Tax Difference Variability as the proxy of the level of the Quality of Accounting Earning. This study used 2,106 sample data from 2011 to 2016 on the listed firm on KOSPI(Korea Composite Stock Price Index). In short, the study results are as follows. Investor Relation(IR) has a negative relevance with Book-Tax Difference Variability, which agreed with the result of additional analysis using extra sample. According to these results, we can expect that Investor Relations(IR) firms will report more faithful Accounting Earning. This study makes the following fresh contribution to the field. The study result confirms how Investor Relation(IR) affects the Quality of Accounting Earning. We hope that this study will help the development of capital market.

Finanial evaluation of shell oil company

  • Pak, Ee-Tong
    • Journal of the Korean Operations Research and Management Science Society
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    • v.1 no.1
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    • pp.139-145
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    • 1976
  • To evaluate the composite composed of Shell-Oil Co. itself and its sub-sidiary companies, the account data for 10 years from 1964 to 1973 was analyzed. Before analyzing, the formula needed to it was deduced and by synthesizing the deduced formula, the price earning ratio (R) was computed as the trial and error method. Resultantly the earning power (ic) was less than 5% ie. R=17.03. So this company showed the normal company earnings and allotment from 1964 to 1968. From 1968 to 1970, the allotment was increased but the earnings was decreased. And in spite of the successive increase of the allotment from 1970 to 1973, the company showed that it was the stable and profitable one with stable increase of earnings. In conclusion, this company showed the stable trend of increase in the allotment of earnings and earnings itself.

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The Effect of Research and Development Expenditure on Firm Value: The Case of Earning Persistence and Patent (특허권과 이익지속계수에 따른 연구개발비 지출이 기업가치에 미치는 영향)

  • Xu, Jingwen;Lee, Ki Se;Jeon, SUNG Il
    • Knowledge Management Research
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    • v.12 no.3
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    • pp.59-71
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    • 2011
  • This study intends to examine the effect of research and development (R&D) expenditure effects on firm value through patent and earing persistence. The patent is the representative intangible asset which objectively indicates a typical product of research and development activities to external parties. If a firm has acquired the patent, it receives amicable evaluation from the market compared to the firm which has not acquired patent. Empirical analysis is performed for non-banking firms (1,860 firm-years) listed on Korean Stock Exchange with December fiscal year-end over 2004-2009. Research results are as follows. First, the multiple pricing of patent acquiring firm and earing persistence increased group showed that they have higher prices than the other groups. Second, the multiple pricing of R&D expenditures of earing persistence increased group showed that they have higher prices than the other group. Third, the R&D expenditures of earing persistence increased group is receiving more friendly evaluation from the stock market than the other group.

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A Qualitative Study on Dual-earner Couples' Work-life Balance (맞벌이 가정, 삶의 경로와 조정방식에 대한 질적 연구)

  • Kim, Seonmi
    • Korean Family Resource Management Association
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    • v.17 no.2
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    • pp.219-241
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    • 2013
  • The study explored the work-life balance of three dual-earning couples using the household economics approach according to the hermeneutics paradigm. Three families were analysed. The couples were interviewed individually with a non-structural interview guide about their work history and life history, and with a semi-structured interview and structured questionnaire about their work hours, childcare practice, husband-wife relation, household income and expenditure, and daily and weekly schedule. The results revealed the different paths and various strategies to adjust work-life balance among the cases. Strategies were discussed to facilitate changes in labor market policy, childcare policy, working place culture and family's daily life planning.

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A Study on Clothing Payment and Management Behavior according to the occasion of Elementary Students Wearing Uniform (초등학생의 교복착용 여부에 따른 피복비 및 피복관리행동 연구 -대구시를 중심으로-)

  • 이봉연;류덕환
    • Journal of the Korean Society of Clothing and Textiles
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    • v.24 no.8
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    • pp.1220-1229
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    • 2000
  • The purpose of the research is to investigate the payment for clothing and clothing management behavior of the elementary school student children, and to study if there is any specific preference toward clothing according to whether or not they wear school uniform. 403 mothers of two elementary school students in Taegu were selected for this study. 1. There is no difference in the times of purchasing clothing between uniform group and nonuniform group. 2. Compared with their money earning, uniform wearing group more money in their clothing purchasing nonuniform group paid less money regardless of their earning. 3. There is a significant of laundry practices in nonuniform group compared with uniform group. 4. According to the inquiry of the clothing concept between uniform group and nonuniform group, uniform group showed higher satisfaction with their uniform than nonuniform group with their nonuniform. 5. Uniform group showed high positive view on the uniform, and both groups showed partial positive view on the nonuniform. There was a positive correlation among clothing payment, clothing management behavior, and clothing dynamics of both groups.

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Effects of Corporate Governance and Earning Quality on Listed Vietnamese Firm Value

  • DANG, Hung Ngoc;PHAM, Cuong Duc;NGUYEN, Thang Xuan;NGUYEN, Hoa Thi Thanh
    • The Journal of Asian Finance, Economics, and Business
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    • v.7 no.4
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    • pp.71-80
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    • 2020
  • The paper examines the influence of corporate governance (CG) and earning quality (EQ) on corporate value (FV) of Vietnamese enterprises. The study uses GLS regression and linear structure model using data collected from companies listing on the stock market in Vietnam during 2008-2018, with a total of 2,937 observations. The research results indicate that EQ and CG represented by the Integrated Board of Directors and the Integrated Supervisory Board have a positive effect on FV directly and indirectly. The results show that the Integrated Board of Directors has a positive effect on EQ, whereas the Integrated Supervisory Board has a negative effect on EQ. Based on the research results, we suggest that companies need to strictly comply and implement GC, so to bring down the agency cost and consequently to increase performance. The companies also should establish the Board of Director of a proper size, with financial and accounting specialty, and including women board members. The government also needs to improve the management mechanism asking for firms to prepare and publish financial statements with reliable company information, which could be provided to users. These recommendations are a useful basis to help businesses improve FV via changes in the corporate governance factors in each enterprise.