• 유통과학연구
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• 제17권12호
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• pp.5-12
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• 2019

Purpose - In this paper, we examine the effect of accrual earnings management and real earnings management on the corporate value of retail corporations. Research design, data, and Methodology - The sample cover firms whose settlement is December among retail companies listed on the Korea Stock Exchange's securities market and KOSDAQ market from 2001 to 2016. Of these, the targets were companies with operating profit and equity capital of zero or higher and with sales data. The secondary data was collected through KIS-VALUE data base. The Jones model and the modified Jones model were used for the calculating the accrual-based earnings management and the real earnings management. Result - According to the empirical results, the relationship between accrual earnings management, real earnings management and firm value is positively significant in the retail industry as in manufacturing industry. These results are also significant when controlling the size, profitability, investment, debt ratio, dividend, and growth potential of a company. Conclusions - The characteristics of the distribution business can be identified and the influence of the various kinds of earnings management, which is being researched around the manufacturing industry, can be studied in the distribution industry to give practical implications to investors.

• Asian Journal of Business Environment
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• 제11권4호
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• pp.5-16
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• 2021

Purpose: This study aims to investigate the impact of auditor-client traffic convenience on accrual -based and real earnings management of the client firms. Research design, data and methodology: Using a sample of firms listed in Shanghai and Shenzhen Stock Exchanges over the period of 2007 to 2018, this paper empirically investigates the association between auditor-client traffic convenience and earnings management. We use three measures of auditor-client traffic convenience: railway traffic convenience, expressway traffic convenience, and air traffic convenience. The accrual-based earnings management is measured by abnormal accruals estimated by industry and year using the Modified Jones Model. Results: Findings indicate that traffic convenience is conducive to detecting and restraining positive accrual earnings management and real earnings management. After changing the measurement of independent variable and dependent variable, including potential omitted variables, the results are statistically unchanged. Further, the research shows that traffic convenience can not only improve audit quality, but also lead to higher fee premiums. Auditors didn't share with clients the cost reduction benefits caused by traffic convenience. Conclusions: Traffic convenience provides auditors with easy access to the client firms, alleviating the information asymmetry and improving corporate earnings quality. The findings have implications for regulators, audit practitioners and stakeholders.

• 한국항해항만학회지
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• 제45권3호
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• pp.173-180
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• 2021

회계는 기업 경영의 핵심 분야 중 하나임에도 해운사의 회계와 관련된 연구는 많이 이루어지지 않았다. 또한, 선박금융, 금융리스 등 금융을 많이 활용하는 해운사에 있어서 재무보고는 매우 중요함에도 불구하고 해운사의 재무보고, 특히 이익조정에 관한 연구는 찾아보기 어렵다. 본 논문의 목적은 해운사의 발생액 이익조정 행태를 분석하는 것이다. 부채비율이 높고, 당기순손실 기업은 이익조정의 유인이 있다고 알려져 있다. 해운사는 산업의 특성으로 인해 부채비율이 높고, 당기순손실을 보고하는 경우가 많다. 따라서 해운사는 이익조정을 많이 할 것으로 예상된다. 2001년부터 2020년까지 한국거래소에 상장된 KOSPI 기업을 대상으로 분석한 결과 해운사는 비 해운사에 비해 이익조정을 많이 하는 것으로 나타났다. 이익조정의 대리변수는 재량적발생액을 사용하였다. 재량적발생액은 Dechow et al.(1995)의 수정Jones모형과 Kothari et al.(2005)의 성과대응모형을 사용하여 측정하였다. 본 연구는 회계처리 행태 중 대표적인 이익조정에 관해 해운사와 비 해운사를 비교 분석함으로써 유의미한 결과를 도출하였다. 외부감사인, 투자자, 금융기관, 애널리스트, 정부당국 등 이해관계자는 상장 해운사의 외부감사, 재무분석, 감독 등에 있어 해운사의 이익조정 행태에 대해 인지할 필요성이 있다. 마지막으로, 상장 해운사는 회계원칙에 입각한 보다 엄정한 회계처리를 해야 할 것이다.

• Asia Pacific Journal of Business Review
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• 제4권1호
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• pp.1-34
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• 2019

This study investigates whether and how a firm's cost of equity capital is influenced by the extent of a firm's real earnings management (REM). Using a large sample of Hong Kong and Chinese firms over the 9-year period 2009-2017, we find that our implied cost of equity estimates are positively associated with both the extent of REM and the extent of accrual-based earnings management (AEM), but the positive association is stronger for REM than for AEM. We also provide evidence suggesting that the effect of AEM and REM on the cost of equity is more pronounced for Hong Kong firms than Chinese firms, and within Chinese firms, it is less pronounced for the state-owned enterprises (SOEs). Collectively, our results suggest that while both REM and AEM exacerbate the quality of earnings used by outside investors, REM does so to a greater extent than AEM, and thus the market demands a higher risk premium for REM activities than for AEM activities and that this cost of capital-increase effect is more prominent in a developed market like Hong Kong and mitigated by state ownership in China because of investors' expectations for a lower level of detriments to firm fundamentals by REM due to government's protection in a less developed market like China.

• 한국콘텐츠학회논문지
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• 제12권12호
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• pp.385-394
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• 2012

본 연구에서는 총수 및 그 일가에 의해 절대적인 영향력을 받고 있는 대규모기업집단이 그렇지 않은 기업에 비해 이익조정행위에 차별적으로 관여하는지 고찰한다. 본 연구는 선행연구에서 간과한 기업특성 및 잠재적 이분산에 기인한 내생성 문제를 통제하고자, 1992년부터 2010년까지 19년 동안 268개의 기업이 반복적으로 관찰되는 패널데이터를 이용한 확률효과 GLS 분석을 수행하였고, 추가분석에서는 잠재적 이분산성을 통제하고자 Hausman and Taylor검증을 실시하였다. 본 연구의 결과를 요약하면 다음과 같다. 재벌집단에 속해 있는 기업들의 발생액을 이용한 이익조정행위는 그렇지 않은 기업들의 이익조정행위 수준과 유의한 차이를 보이지 않는 것으로 나타난 반면 실제이익조정행위를 덜 행하는 것으로 나타났다. 이는 미래경영성과 및 장기주가에도 부정적인 영향을 미치고, 기업가치 또한 크게 오인시키는 실제이익조정행위를 대규모집단이 회피한다는 것으로 해석할 수 있다. 본 연구는 재벌기업의 장기간 시계열특성과 횡단면적 특성을 동시에 고려한 패널데이터를 이용하여, 재벌기업과 이익조정의 관련성에 대한 보다 신뢰할 수 있는 결과를 제공했다는 점에서 의미가 크다고 할 수 있다.

• Journal of East Asia Management
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• 제4권1호
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• pp.23-51
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• 2023

We investigate whether the association between management overconfident tone and the level of audit effort measured by audit fees and hours differs depending on the level of earnings management. Prior studies suggest that firms led by overconfident managers are likely to initiate risky investments, report low quality financial statements, and have material weaknesses in internal control system. These characteristics, combined together, result in higher audit risk. At the same time, auditors assess audit risk based on the quality of financial reporting, measured by level of earnings management. As a result, the assess audit risk is likely to reflect the combined effect of management overconfidence and the level of earnings management. In this paper, we investigate whether auditors differentiate the effects of real earnings management (REM) and accrual-based earnings management (AEM) when they assess the audit risk related management overconfident. Using the CEO's letter published in 2018, we measure the CEO's tone representing the degree of overconfidence (i.e., activity). Based on this measure, we find that the positive association between managerial overconfident tone and audit effort is more pronounced as the level of REM is higher. However, we find that the baseline association does not vary depending on the level of AEM. These results suggest that auditors consider the managerial overconfident severer when such characteristic accompany the higher level of REM, which can be outcome of aggressive business decisions possibly leading to the higher audit risks. We further find that these results are stronger for Big 4 auditors and continuing auditors. This paper contributes to the literature and practice as follows. First, we provide contextual evidence on how auditors reflect managerial characteristics in the audit process by documenting that auditors actively increase their audit efforts only when overconfident managerial characteristics are highly likely to lead to audit risk. This result suggests that auditors conduct external auditing considering both the efficiency and effectiveness of the audit process. Second, we suggest that auditors use information obtained from a wide range of sources to identify audit risks. Our results provide evidence of how the auditing standards, which do not provide detailed guidelines for audit risk assessment, are being applied in practice. Finally, our results also enhance the understanding of how audit fees are determined. Combined with the studies related to audit pricing, we provide the important reference for discussion between the auditor and the auditee about the audit fee that has created acute tension after the enforcement of the new External Audit Act.