• Journal of Distribution Science
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• v.13 no.9
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• pp.95-101
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• 2015

Purpose - This study provides evidence of the impact of the mandatory adoption of Korean equivalents to International Financial Reporting Standards (K-IFRS) on accounting quality. K-IFRS uses fair value as a basis of measurement and is characterized by principle-based standards. These characteristics can lead to a decrease in conservatism. Therefore, this study aims to examine whether or not there is a change in the level of conservatism before and after the enforcement of K-IFRS (2007~2014). By comparing 2007 through 2008 and 2013 through 2014 (excluding 2009 to 2012), we test "the temporary adjustment phenomenon" and document an overall decline in the degree of conservatism after the adoption of K-IFRS. Research design, data, and methodology - Our sample is comprised of data of all listed Korea Composite Stock Price Index (KOSPI) manufacturing distribution companies in Korea from 2007 to 2014, which yields the pooled sample of 4,412 (panel A) and 1,915 (panel B) firm-year observations for hypotheses 1 and 2. In line with recent literature, we adopt the Givoly and Hayn (2000) model, which recomputes the non-operating accruals, excluding two components that are most likely to capture the effect of restructuring activities: special items and gains or losses from discontinued operations. In addition, we also use these variables: SIZE, LEV, INV_CYCLE, ROA, OWN, and FOR. Results - Our sample period spans 2007 to 2014. This offers evidence on the effect of the mandatory adoption of IFRS on conservatism. Our findings can be summarized as follows. First, in panel A, for mandatory K-IFRS adoption (2011), we do not find any significant evidence of conservatism. We can guess that the "temporary adjustment phenomenon" is the reason that we do not find significant evidence of conservatism. Second, we investigate panel B from 2009 to 2012. We document an overall decline in the degree of conservatism after the adoption of K-IFRS. We can assume that these results are due to "the temporary adjustment phenomenon." Conclusions - This study finds that conservatism significantly decreased after IFRS adoption. In particular, this study makes the initial effort to elucidate "the temporary adjustment phenomenon" to analyze the effect of K-IFRS on conservative accounting. We argue that K-IFRS are conceptually conservative but that inappropriate application of the conservatism principles is likely to prevent financial reporting from reaching the level of conservatism targeted by the IASB. Overall, this paper contributes to the literature on IFRS and can be useful to capital market supervisors who are monitoring the trends of the firms implementing K-IFRS. Additionally, our results inform stakeholders of the potentially negative effect of the greater flexibility permitted by IFRS and/or lack of appropriate enforcement on key dimensions of accounting quality. This has important implications for Korean regulators and standard setters as they review the cost and benefits of IFRS. Our study also sheds light on the importance of the institutional environment in achieving the targeted objectives for improving financial reporting quality.

• Korean Business Review
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• v.21 no.1
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• pp.37-49
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• 2008

Many sports organizations have been founded due to the Increasing demand for sports with the development of leisure culture. As a social institution for sport facilitation, sports organizations should assure rationality and transparence of finance and operation by introducing a system for financial reporting as usually adopted for a profit-making corporation. Also, general regulations on the tax obligation in sports organizations have to be formulated more clearly. This study tried to derive some implications for the accounting and taxation obligations in Korean sports organizations based on a basic model of public sports organizations, formed with a profit-making organization and satisfying the requirements of public interest as regulated by German taxation law.

• Journal of Digital Convergence
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• v.11 no.5
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• pp.135-144
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• 2013

The purpose of this study is case analysis on adopting process of K-IFRS and financial effects of SBS Media Holdings Co., Ltd. Adoption process is divided into two stages, To analyze the effect due to changes in accounting standards and to run this, system change and build a range-determining step in the IT sector. Showed that had the most significant impact on the financial effects due to changes in the target's of consolidated F/S and inventories and intangible assets(broadcasting content assets).

• Korean Management Science Review
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• v.20 no.2
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• pp.113-133
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• 2003

This study developed the ISM (Electronic Store Success Model) by basing upon the revised D&M IS Success Model and reflecting the characteristics of marketing and e business. The theoretical rationale of this model was as following : 1) Though the revised D&M IS Success Model (2002) must be more logical and complete model than the original D&M IS Success Model (1992), it did not reflect characteristics of marketing and e business. 2) In the marketing studios, Service Quality has been suggested as one of basic strategies for success. 3) In e business studies, Trust has been emerging as a potentially important antecedent of e loyalty. 4) There has been a paradigm shift from satisfaction to loyalty in marketing emphasis. 5) Nowadays, ERP (Enterprise Resource Planning) has been pervaded in many organizations and has supported PCA (Profit Center Accounting) or Channel based Accounting, so it has not been difficult to evaluate financial performance of Electronic Store. The ESM that has six dimensions (System Quality, information Quality. Service Quality, Trust, Loyalty, Financial Performance) and expresses the causal relationship among them was proposed and was compared with BSC (Balanced Scorecard), WebQual, and EWAM (Extended Web Assessment Method). The results showed that the ESM coincides with BSC and contains dimensions of WebQual, and EWAM.

• Journal of the Korean Operations Research and Management Science Society
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• v.23 no.4
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• pp.213-224
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• 1998

Since the late 1980s, an Increasing number of neural network models have been studied in the areas of financial prediction and analysis. The purpose of this study is to Investigate the possibility of building a neural network model that is able to construct a profitable trading strategy in the Korean Stock Market. This study classifies stocks into the future market winners and losers from the publicly available accounting information and builds portfolios based on this information. The performances of the winner portfolios and the loser portfolios are compared with each other and against the market index. The empirical result of this research is consistent with the traditional fundamental analysis where it is claimed that the financial statements contain firm values that may not be fully reflected In stock prices without delay. Despite the supporting empirical evidence. It is somewhat Inconclusive as to whether or not the abnormal return in excess of market return is the result of the extra knowledge obtained in the neural network models derived from the historical accounting data. This research attempts to open another avenue using neural network models for searching for evidence against market efficiency where statistics and intuition have played a major role.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.5
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• pp.41-50
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• 2020

The paper investigates the factors that affect the demand for a voluntary audit of small and medium-sized enterprises (SMEs) in Vietnam. A structured questionnaire survey of 284 SMEs was employed, preceded by in-depth interviews with auditors and SMEs' managers. The research used logistic regression estimator to address econometric issues and to improve the accuracy of the regression coefficients. The results show that the degree of director's view on voluntary audit, related stakeholder, degree of recommendation, and firm size have a statistically significant positive effect on audit decisions of SMEs while degree of audit fee has a statistically significant negative effect, and degree of subjective norm does not affect. This indicated that SMEs are more likely to have an external audit if they have some typical features: it is becoming larger in terms of size, and the directors consider that the audit has a relative benefit outweighing its cost. The research results suggested that Vietnam Government should make a statutory audit of SMEs' financial statements rather than make it an option for SMEs. The auditing firms were also recommended to actively take their audit services to SMEs rather than waiting for the SMEs' managers to contact them for their services.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.21-31
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• 2020

Environmental pollution and climate change in Vietnam are now becoming a major concern. This situation is increasing the pressure on the companies to improve their social responsibility in production and business activities and disclose the environmental information to meet the requirements of stakeholders. This study investigates the internal and external factors of the company that affects the environmental information disclosure of listed companies on the Vietnam stock market as business sector, firm size, corporate manager perceptions, profitability, financial leverage, community pressure, pressures from stakeholders, government pressure influencing environmental information disclosure. Analytical data collected through the survey of 120 listed companies on the Ho Chi Minh City Stock Exchange (HOSE). By testing Cronbach's Alpha, exploratory factor analysis (EFA) and logistic regression analysis, the results of the study show that the level of environmental information disclosure of listed companies on the stock market in Vietnam depends heavily on government regulations, followed by the pressure from stakeholders, community pressure, views of business managers, companies size, business sector, and particularly profitability and financial leverage factors that have a negative relationship with environmental information disclosure.

• Journal of Society of Preventive Korean Medicine
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• v.12 no.3
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• pp.21-34
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• 2008

Objectives : This paper analysed the alternative methods of calculating conversion factor for oriental medicine in the National Health Insurance and estimated the conversion factor(reimbursing price level) of the oriental medical services, based on health insurance claims data and macro economic data. Methods : Comparing cost accounting method, SGR model, and index model to estimate conversion factor in the national health insurance, six empirical models were derived depending on the scope of revenue considered in financial indicators. Classifications of data and sources used in the analysis were identified as officially released by the government. Results and Conclusion : Cost accounting analysis and SGR model showed a two digit decrease in the physician fee schedule of oriental medical services in the national health insurance, while index model indicated a positive increase in the fee reimbursed. As expected, SGR model measured an overall trend of health expenditures rather than an individual financial status of medical institutions, and index model properly estimated the level of payments to oriental medical doctors. Upon a declining share of health expenditures on oriental medicine, a global budget system fixed to a flat rate of total budget could be an opportunity as well as a challenge.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.2
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• pp.45-54
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• 2019

This study examines whether auditors restrain the analysts' opportunistic behavior as reviewing the companies' interim reports. Analysts' forecasts show a walkdown pattern in which their optimism has decreased as the earnings announcement date has approached. At the beginning of the year, there is a lack of high-quality benchmark information that enables information users to judge the accuracy of analyst's earnings forecasts. Thus, early in the year, analysts are highly inspired to disseminate optimistic forecasts in order to gain manager's favor. In this study, we examine adequate benchmarks prevent analysts from disclosing optimistically biased forecasts. We conjecture that auditors' efforts might mitigate analysts' walkdown pattern. To test this hypothesis, we use data from Korea, where it is mandatory to disclose auditor's review hours. We find that the analyst forecast's walkdown decreases with the ratio as well as the number of audit hours. It implies that an auditor's effort in reviewing interim financial information has a monitoring function that reduces analysts' opportunistic optimism at the beginning of the year. We conjecture that the tendency will be more pronounced when BIG4 auditors review the interim reports. Consistent with the prediction, BIG4 auditors' interim review effort is more effective in suppressing the analysts' walkdown.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.399-409
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• 2021

This study examines whether oil and gas companies comply with the requirements of the International Financial Reporting Standards (IFRS) 6 on Exploration and Evaluation (E&E) of Mineral Resources. For this purpose, a comprehensive checklist divided into eight different parameters was prepared by including every requirement of IFRS 6. While building on the previous studies, the annual reports of the top five Indian and top five Global companies engaged in this business have been investigated in detail against the checklist using content analysis as the research method. Results show that a majority of the companies (both Indian as well as global companies) have not been complying with the requirements of IFRS 6. In five out of eight parameters the companies have not complied with even half of the requirements. The overall compliance ratio is as low as 41.54 percent and 43.68 percent for Indian and Global companies respectively. While analyzing the non-compliance, it has been observed that despite having distinct accounting standards, different kinds of companies are reporting differently. Thus, it is not in line or consistent with the goal of IFRS i.e., to establish a universal language for the companies to prepare the accounting statements. The research findings identify the exact area of non-compliance while citing the relevant paragraph number of IFRS 6.