• Management & Information Systems Review
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• v.35 no.4
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• pp.123-140
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• 2016

This study investigates whether tax subsidy is associated with the information effect of future earnings (Future Earnings Response Coefficient, hereafter 'FERC'). Prior studies related with tax subsidy suggest that high- tax subsidy is associated with high-Conservatism. And high-tax subsidy is associated with low-information asymmetry. The hypothesis is tested by using sample firms listed on the Korean Stock Exchange from the year of 2002 to the year of 2009 inclusively. We followed methodology of Tucker and Zarowin (2006). We find that the regression coefficient for tax $subsidy{\times}X_{t3}$ shows a significant positive sign. Also, we performed additional test after controlling for variables related with FERC. The regression coefficient for tax $subsidy{\times}X_{t3}$ is consistent with main results. This result means that the changes in the current stock price of higher-tax subsidy contain more information about their future earnings than the changes in the stock price of lower-abnormal audit hours. The evidence suggests that investors positively understand high-tax subsidy.

• Journal of the Korea Convergence Society
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• v.8 no.11
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• pp.363-372
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• 2017

This study analyzed how management earnings forecasts would have an effect on future earnings quality. The analysis period of study was from 2003 till 2009 (ofrom 2004 till 2011) based on variables of interest (dependent variables) and the annual data from a total of 475 companies that publicly announced manager's operating earnings forecasts among securities listing companies were used for analysis. As a result, first, it appeared that the more optimistic the manager's earnings forecasts were for the current term, the lower the future earnings quality was. Second, it was found that the lower the accuracy of the manager's earnings forecasts was for the current term, the lower the future earnings quality was. Such findings suggest that management earnings forecasts will be used for determining future earnings quality.

• The Journal of the Korea Contents Association
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• v.17 no.6
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• pp.319-328
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• 2017

Earnings management is a collection of management decisions which firms do not report the true performance. Many prior studies suggest that earnings management could be the results of either managerial earnings management or manager's private information for future performance. This study attempts to delve into the fundamental implications inherent in earnings management by analyzing how earnings management affects future firm performance in public institutions. If discretionary accruals as a measurement of earnings management embrace manager's private information, it will have a positive effect on future performance in succeeding period. In contrast, if discretionary accruals embrace manager's opportunistic earnings management, it will have a negative effect on future performance in succeeding period. Empirical findings are summarized as following.: Earnings managements are negatively associated with future firm performance for all succeeding period. This negative relationship continues for all succeeding period. The overall results can be serve as a evidence that the discretionary accruals capture opportunistic earnings management on average.

• The Journal of Small Business Innovation
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• v.19 no.3
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• pp.43-55
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• 2016

This study examines the implications of special items (SI) for future earnings using quarterly Korean data over the period from 2011 to 2014. Due to the lack of identification of SI in Korea, I choose several items as special items if they are material and non-recurring items following prior studies. Then I regressed seasonally-differenced future earnings on positive and negative SI and found that their effects on future earnings were different. While negative SI are explained by inter-period expense transfer, positive SI are not well-described by traditional prototypes. Next, I regressed seasonally-differenced future earnings on negative SI sub-types as they are heterogeneous in nature and have differing implications for future earnings. While PPE impairments and intangibles impairments are partly explained by the inter-period expense transfer, unspecified loss of other loss items are not. Interestingly, these effects are attenuated or disappear in the Kosdaq market when the markets are divided into the Kospi and Kosdaq markets.

• Journal of Digital Convergence
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• v.15 no.12
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• pp.283-291
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• 2017

This Study analyzes the predictability of accounting information from mandatory K-IFRS adoption using the K-IFRS reconciliations information. We use the sample of 2,557 firm-year Korea listed companies belonging to non-financial corporate sector during 2010-2016. Specifically, we examine whether K-IFS reconciliation would improve or reduce the predicting power for future earnings after K-IFRS adoption. The results of empirical analyses show that reconciliation information from discretionary judgement tend to reduce the predicting power of K-IFRS based accounting earnings for future earnings. This result indicates that managers are likely to use the adjustments process to reconcile K-GAAP accounting numbers with corresponding K-IFRS as means to realize the various private utility. This study is expected to provide useful information by suggesting the need for more rigid screening schemes for the K-IFRS reconciliation process and also for adequate measures to be taken to ensure that the interests of the outside investors are properly protected.

• Journal of Digital Convergence
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• v.16 no.10
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• pp.125-132
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• 2018

The purpose of this study is to analyze the effect of managerial predictive accuracy on managerial performance-compensation. In this study, we compared managerial performance with managerial performance, And to analyze the relationship between manager compensation and manager compensation using managerial profit prediction accuracy. As a result of this study, there is a significant positive relationship between profit prediction accuracy and manager compensation, which can be interpreted as a result of manager's ability to compensate manager's ability to predict the future well. In this paper, we propose a new methodology that can be used to analyze the effects of managerial compensation on managerial compensation. This is because there is a difference in that it is proved to be a factor. Therefore, it is important to note that the prediction of the future of the company also identifies the additional determinants that affect manager compensation contracts with the key managerial capabilities.

• Journal of Digital Convergence
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• v.15 no.1
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• pp.129-141
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• 2017

This study analyzed and compared the accounting earnings quality after the adoption of K-IFRS, targeting the stock exchange-listed firms (KOSPI, KOSDAQ). The analysis first revealed that KOSPI had higher quality accruals, and better persistence and predictability of the reported earnings and cash flows, compared to KOSDAQ. Second, in both KOSPI and KOSDAQ, the predictability of future cash flow showed that the accounting earnings was better than the cash flows. Third, for the persistence and predictability of earnings associated with the degree of accruals, in KOSPI and KOSDAQ both all, groups with better accruals quality had greater persistence and predictability of earnings, and a better future cash flow predictability of accounting earnings.

• Nuclear industry
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• v.33 no.5
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• pp.80-84
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• 2013

• Water for future
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• v.31 no.1
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• pp.130-132
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• 1998

• Nuclear industry
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• v.27 no.5 s.291
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• pp.2-25
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• 2007