Journal of Digital Convergence (디지털융복합연구)

The Society of Digital Policy and Management (한국디지털정책학회)
권호 표지
DOI QR코드

DOI QR Code

Relationship of earnings and credit rating before and after IFRS

IFRS 전후 이익조정과 신용평가등급의 관계

  • 안수경 (경기대학교 대학원) ;
  • 김광용 (백석예술대학교 경영행정학부)
  • Received : 2014.08.20
  • Accepted : 2014.11.20
  • Published : 2014.11.28
Download PDF
⟨ Previous Next ⟩

Abstract

This study the impact on the real earnings management credit rating (RANK), and looked at the impact on the real earnings management grade credit rating changes (decrease, increase) the effects in detail. firm for a total of 06 years for firm that are listed on the Korea Stock Exchange from 2008 to 2013 for the hypothesis - using the proceeds of the year 2,583 sample were analyzed to study. A regression analysis of the relevance of the credit rating (RANK) and real earnings measured results between the credit rating and a measure of real earnings management ACFO and ADE (+) between AMC (-) IFRS and receive relevant ADE between(+) between AMC (-) if the credit rating (RANK) is increased ACFO and is significantly sound level at 1% showed the relevance of (+) did not significantly ADE (+) 10% of AMC if the credit rating fell ACFO is (-) from AMC show the relevance of positive credit rating is dropped capital letter showed for performing real earnings management of positive even give up the future cash flow in order to reduce the cost.

본 연구에서는 기업의 신용평가등급(RANK) 변화(하락,상승)가 실물이익조정에 미치는 영향을 살펴보았다. 가설검증을 위해 2008년부터 2013년까지 한국거래소에 상장되어 있는 기업을 대상으로 총 6년 동안 기업-연도 2,583개의 표본을 사용하여 연구를 진행하였으며 실증분석한 연구결과는 다음과 같다. 첫째, 신용평가등급(RANK)과 실물이익조정의 측정치인 비정상영업현금흐름(ACFO)과 비정상재량적비용(ADE)간에는 양(+)의 관련성이 나타났으며, 비정상제조원가(AMC) 간에는 음(-)의 관련성이 나타났다. 둘째, IFRS 도입과 비정상재량적비용(ADE) 간에는 양(+)의 관련성이 나타났으며, 비정상제조원가(AMC) 간에는 음(-)의 관련성이 나타났다. 셋째, 신용평가등급(RANK)이 상승한 경우 비정상영업현금흐름(ACFO)과는 1%수준에서 유의한 양(+)의 관련성이 나타났고, 비정상재량적비용(ADE)과는 유의하지 않은 음(-)의 관련성이 나타났고, 비정상제조원가(AMC)는 10%수준에서 유의한 양(+)의 관련성이 나타났다. 넷째, 신용평가등급이 하락한 경우 비정상영업현금흐름(ACFO)과는 음(-)의 관련성이 나타났고, 비정상제조원가(AMC)와는 양(+)의 관련성이 나타나 신용평가등급이 하락한 기업은 자본조달비용을 감소시키기 위해 미래의 현금흐름을 포기하더라도 양(+)의 실물이익조정을 행하는 것으로 나타났다.

Keywords

References

  1. Burgstahler. D and I Divhev, Earning Management to Avoid Earnings Decreases and Losses. Journal of Accounting and Economics, Vol. 24, pp. 99-126, 1997. https://doi.org/10.1016/S0165-4101(97)00017-7
  2. Degeorge, F., J. Patel, and R. Zeckhauser, Earnings Management to Exceed Thresholds. Journal of Business, Vol. 72, pp. 1-33, 1999. https://doi.org/10.1086/209601
  3. Caton G., C. Chiyachantana, C. Chua, and H. Goh, Earnings Management Surrounding Seasoned Bond Offering : Do Managers Mislead Ratings Agencies and the Bond market?. Journal of Financial and Quantitiative Analysis, Vol. 46, No. 3, pp. 687-708, 2011. https://doi.org/10.1017/S0022109011000147
  4. Roychowdhury, S., Earnings Management Through Real Activities Manipulation. Journal of Accounting and Economics, Vol. 42, pp. 335-370, 2006. https://doi.org/10.1016/j.jacceco.2006.01.002
  5. Cohen, D., A. Dey and T. Lys., Real and Accrual Based Earnings Management in the Pre-and Post-Sarbanes-Oxley Periods. The Accounting Review, Vol. 83, No. 3, pp. 757-787, 2008. https://doi.org/10.2308/accr.2008.83.3.757
  6. Cohen, D., and P. Zarowin., Accrual-Based and Real Earnings Management Around Seasoned Equity Offerings. Working paper. New York University., 2010.
  7. Kim, J., and B. Sohn., Real Versus Accrual-Based Earnings Management and Implied Cost of Equity Capital, Working Paper, 2009.
  8. Pae S., and T. Quinn., Do Firms Manipulate Earnings When Entering the Bond Market?. Academy of Accounting and Financial Studies Journal, Vol. 15, No. 1, pp. 99-115, 2011.
  9. Graham, J., C. Harvey, and S. Rajgopal, The Economic Implications of Corporate Financial Reporting. Journal of Accounting and Economics, Vol. 40, pp. 3-73, 2005. https://doi.org/10.1016/j.jacceco.2005.01.002
  10. Jeong Ok Kim, Gil S. Bae, Hybrid Debt Issuance and Earnings Management: An Analysis of Public and Private Placement. Korean accounting review, Vol. 29, No. 2, pp. 83-109, 2004.
  11. Jong Il Park, Chan Woong Park, The Effects of Discretionary Accruals by Non-listed Firms on the Association between Earnings and Cost of Debt. Journal of Taxation and Accounting, Vol. 12, No. 3, pp. 429-458, 2011.
  12. Dechow. P. M., and I. D. Dichew, The Quality of Accruals and Earnings : The Role of Accrual Estimation Errors. The Accounting Review, Vol. 77, pp. 35-59, 2002. https://doi.org/10.2308/accr.2002.77.s-1.35
  13. Hyun-Ju Moon, A Relation among Debt Ratio, Variance of Profits and Discretionary Accruals. Korea Journal of Business Administration, Vol. 20, No. 4, pp. 1647-1666, 2007.
  14. Jung Kyo Kim, Soon Mi Yu, Hyun Jin Kim, The Impact of Real Earnings Management on Cost of Capital. Korea International Accounting Review, Vol. 44, pp. 23-48, 2012.
  15. Holthausen. R. W., and R. Leftwich., The Effect of Bond Rating Changes on Common Stock Prices. Journal of Financial Economics, Vol. 17, pp. 57-89, 1986. https://doi.org/10.1016/0304-405X(86)90006-1
  16. Goh, J. C., and Ederington, L., Is a Bond Rating Downgrade Bad News, Good News, or No News for Stockholders?. The Journal of Finance (December), pp. 2001-2008, 1993.
  17. Ashbaugh-Skaife. H., D. Collins, and R. LaFond., The effects of corporate governance of firms' credit ratings. Journal of Accounting and Economics, Vol. 42, pp. 203-243, 2006. https://doi.org/10.1016/j.jacceco.2006.02.003
  18. Hee Jang Oh, The Effect of Commercial Paper Rating Changes on Stock Prices Estimation. Korean Management review, Vol. 28, No. 4, pp. 1073-1098, 1999.
  19. Moon Tae Kim, June Bok Wee, Sung Il Jeon, Controlling Effects of Corporate Bonds Grading System on Earnings Management. Asia-Pacific Journal of Financial Studies, Vol. 35, No. 5, pp. 45-74, 2006.
  20. Kuk Hyun Choe, An Na Shin, An Empirical Study of the Effects of Credit Ratings on Earnings Management. Accounting Information Review, Vol. 24, No. 1, pp. 125-158, 2006.
  21. Jee Hong Kim, Jai Min Goh, Yun Sung Koh, Real earnings management to avoid loss and smooth income. Korean Accounting Journal, Vol. 17, No. 4, pp. 31-63, 2008.
  22. Ashbaguh. H., R, Lafond and B. Mayhew, Do Non-audit Services Compromise Audit Independence? Further Evidence. The Accounting Review, Vol. 78, No. 3, pp. 611-639, 2003. https://doi.org/10.2308/accr.2003.78.3.611
  23. Dichev, I., and D. Skinner., Large-Sample Evidence on the Debt Covenant Hypothesis. Journal of Accounting Research, Vol. 40, pp. 1091-1123, 2002. https://doi.org/10.1111/1475-679X.00083
  24. In Chul Na, Jong Hyun Kim, Does Accruals Quality Moderate the Informativeness of Earnings with Respect to Corporate Bond Ratings. Accounting Information Review, Vol. 27, No. 4, pp. 241-273, 2009.
  25. Soon Suk Yoon, Gun Yull Lee, Earnings Management of Seasoned Equity Offerings. Korean accounting review, Vol. 26, No. 4, pp. 1-26, 2001.
  26. Jorion. P. and Z. Gaiyan, Earning Management to Avoid Earnings Decreases and Losses. working paper, 2009.