• 아태비즈니스연구
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• 제15권3호
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• pp.351-365
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• 2024

Purpose - The purpose of this paper is to examine the value relevance of the relative sizes of the contractual service margin (hereafter CSM) and the risk adjustment for non-financial risk (hereafter RA). Additionally, the paper examines how the relative size of the CSM impacts the relative value relevance of net assets and net income. Design/methodology/approach - This study conducted an empirical analysis utilizing the quarterly financial data and stock price information of domestically listed insures (including life and non-life insurers) from 2023 onwards. Specifically, regression analysis and parallelism tests were employed in the research. Findings - Firstly, the empirical analysis of the value relevance of CSM and RA showed that CSM has a significant positive value relevance with firm value, while RA has a significant negative value relevance with firm value. Secondly, it was found that as the CSM increases, the value relevance of net income increases, whereas the value relevance of net assets decreases. Research implications or Originality - Despite both CSM and RA being components of insurance contract liabilities, their differing impacts on firm value suggest that the capital market has a relatively clear understanding of the characteristics of CSM and RA. The finding that the value relevance of reported current earnings increases with larger CSM indicates that CSM-focused management is desirable from the perspective of enhancing firm value.

• 경영과정보연구
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• 제25권
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• pp.203-222
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• 2008

This thesis examines whether accounting information-earnings and book values-has the value relevance in the KOSDAQ. The study is motivated by previous studies which have examined the value relevance of accounting information. Prior researches have focused on KSE(Korea Stock Exchange). But, prior researches have not examined the value relevance of accounting information in KOSDAQ. So, this study examined the value relevance of accounting information which is disclosed by firms on KOSDAQ and whether accounting information between firms on KOSDAQ and KSE has the discriminative value relevance, underlying the expectation that KOSDAQ firms will have higher future profitability than KSE firms. In other words, book-value multiples of KOSDAQ firms is higher than book-value multiples of KSE firms and earnings multiples of KOSDAQ firms is lower than earnings multiples of KSE firms. The value relevance of accounting information is examined by a valuation framework presented by Ohlson(1995), which expresses the stock-price as a function of both earnings and book values of equity. The results indicate that accounting information of KOSDAQ has significant explanatory power for stock price over the 2005-2007 period. KOSDAQ firm are divided by Venture firms and Small to Mid size firms. KOSDAQ Venture firms have the discriminative value relevance, compared with KSE firms. But, KOSDAQ Small to Mid size firms have not the discriminative value relevance, compared with KSE firms.

• The Journal of Asian Finance, Economics and Business
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• 제7권11호
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• pp.335-346
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• 2020

This study aims to describe the role of corporate governance as a moderator in electronic financial disclosure that adopts Extensible Business Reporting Language (XBRL) and Company Characteristics on value relevance. The population in this study was all manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2018, totaling 166 companies. The sampling technique used purposive sampling method, namely, manufacturing companies that publish fully audited financial statements by December 31 of the year 2017-2018. The method used in this research is a quantitative description using the financial statements of manufacturing companies listed on the Indonesia Stock Exchange that have adopted XBRL during the 2017-2018 period. The data analysis method used is multiple regression analysis with moderating variables. The results of this study show a negative and insignificant effect of XBRL on value relevance, a significant negative effect of size on value relevance, a positive and insignificant effect of growth on value relevance, and a significant positive effect of profit on value relevance; meanwhile, corporate governance moderation variable has an insignificant effect in all hypotheses. Suggestions are to increase the number of variables that have an important role in value relevance and expand the number of research objects to be compared.

• 아태비즈니스연구
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• 제9권3호
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• pp.71-82
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• 2018

This study verifies whether the sustainable tax strategy provides unique information on earnings persistence and brings about the difference of value relevance of accounting information. Sustainability is measured by the 5-year coefficient of variation in cash ETR, such as in McGuire et al.(2013), which measures variability in long-term performance of tax avoidance. The value relevance of accounting information in this study is modified by the Ohlson model(1995), which explains the value of the firm by using accounting information such as net assets and net income and other non-accounting information. The samples of this study are the firms listed on the securities market from 2004 to 2015 and the final samples are 3,133 firm-year. The results of this empirical analysis show that the value relevance of accounting information increases as firms have long-term and sustainable tax strategies. Most of the prior studies on tax strategies have examined the tax minimization strategy that minimizes the tax cost. However, this study is different in that the sustainability of the tax strategy affects the value relevance of accounting information. The results of this study will be useful for the users to make decision using the value relevance of accounting information.

• The Journal of Asian Finance, Economics and Business
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• 제8권3호
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• pp.49-59
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• 2021

This study empirically analyzes the effect of firm overinvestment propensity on the value relevance of capital investment. In order to verify this point, this study attempts to analyze the value relevance of overinvestment firms' capital investments. The analysis was performed according to the model of Biddle et al. (2009) and McNichols and Stubben (2008) on overinvestment propensity for analysis, and the results are as follows. First, in terms of overinvestment, corporate capital investment shows negative value relevance, so the excessive investments above reasonable levels have reduced firm's value. In contrast, the value relevance for capital investment showed a positive value for firms whose managerial propensity changed, that is, from under-investment in the previous year, it shifted to overinvestment in the current year. Second, as a result of analyzing the value relevance of the investment increase according to the investment propensity, the overinvestment firms showed negative values and the underinvested firms showed positive values; thus, the value relevance of the increase in investment was opposite to the investment propensity of the firm. These findings confirm that the stock market differentially evaluates investment efficiency according to investment propensity, continuity, and investment alterations, and reflects it appropriately in the firm's value.

• The Journal of Asian Finance, Economics and Business
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• 제8권3호
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• pp.1083-1094
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• 2021

This paper explores the effect of IFRS on the financial performance of Iraqi commercial banks. It also investigates the value significance of financial performance statements using the Ohlson model, which has been used for the stock value relevance test in a number of studies. Using a sample of 66 listed banks on the Iraq Stock Exchange over three years of IFRS pre-adoption (2011-2013) and three years of IFRS post-adoption (2016-2018), we find financial performance components EPS and BVS value relevant to the stock returns. The findings also indicate that the implementation of IFRS has a major positive effect on the value relevance of the BVS, while the adoption of IFRS does not have a significant impact on the value relevance of the EPS reported by Iraqi banks. Our results indicate that the market value of the bank rises dramatically with enhanced financial performance reporting. In addition, the implementation of IFRS has a major effect on the financial performance measures and the value relevance of financial reporting in the Iraqi banking sector. This paper adds to previous value relevance literature and IFRS by throwing light on the banking sector in a developing country that has recently moved from applying local accounting standards to IFRS.

• The Journal of Asian Finance, Economics and Business
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• 제8권2호
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• pp.387-399
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• 2021

This study mainly aims to examine the effect of intangible assets on the value relevance of the Gulf Cooperation Council (GCC)-listed non-financial firms. This study tested three types of models by using a large sample of non-financial firms listed in GCC countries as emerging markets from 2008 to 2016. The types of models are accounting information (earnings per share and book value of share) without intangible assets model, intangible assets model, and accounting information (earnings per share and book value of share) with intangible assets model. Ordinary least square (OLS) shows mixed results as intangible assets improve the value relevance of accounting information positively in UAE and negatively in Kuwait but not in other countries. The study documents a robust positive relationship between intangible assets and earnings quality in terms of value relevance in KSA and Qatar. The findings provide implications for policymakers, investors, and managers. The results suggest that intangible assets can improve the value relevance in emerging markets, such as GCC, as the need to organize the requirements of information disclosures on intangible assets and provide great transparency and additional disclosure of information about intangible assets and their components.

• 아태비즈니스연구
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• 제11권3호
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• pp.123-136
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• 2020

Purpose - This study is to verify the impact of the documentation of key audit matters on the value relevance of accounting information in accordance with the revised accounting audit standards in 2017. Investors will be able to identify the company's significant financial risks through key audit matters and use them to make investment decisions. Design/methodology/approach - From 2011 to 2019, the final sample is 290, based on the December settlement of accounts listed on the securities market. Ohlson (1995) was used to verify the incremental link between net income and the book value as a determinant of corporate value. Findings - First, the key audit matters in the financial industry was found to have a negative (-) effect that was significant to the value relevance of accounting Information. In addition, the value of the interaction between the key audit matters and the net income is a significant (+) relationship with the share price and the value of the interaction between the key audit matters and the book value is a significant (-) relationship with the share price. This means that the key audit matters is the determining factor of corporate value, positively reflects the accounting information in net income and negatively reflects the accounting information in book value. Second, among the key audit matters, the fair value assessment of financial instruments and the adequacy of premiums reserve have a significant impact on the value relevance of accounting information. Research implications or Originality - The results of this study suggest that investors recognize key audit matters as information about the company's major financial risks and reflect them differently in the value relevance of accounting information.

• 경영과정보연구
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• 제35권1호
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• pp.143-154
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• 2016

본 논문에서는 신임 최고경영자가 취임 초기에 우호적인 시장의 평판, 높은 보상 및 계약 연장 등의 개인적 혜택을 목적으로 이익 조정 등을 통한 보고 이익의 과다 계상 행태로 인한 기업의 실질 이익과 보고 이익간에 괴리가 생겨 기업의 가치관련성에 영향을 미칠 것으로 예상하였다. 이러한 가치관련성의 변화를 살펴보기 2004년부터 2014년까지 11년간을 연구기간으로 선정하고 최고경영자 교체기업의 가치관련성을 미교체기업과 비교하고, 신임경영자의 취임 초기의 가치관련성 변화를 재임 후반기와 비교하여 실증분석하였다. 연구방법으로는 Ohlson(1995)의 가치평가식을 이용하여 기업의 순이익 및 순자산 장부가치에 대한 차별적 가치평가계수를 추정하는 방법을 적용하였다. 연구기간동안 14,373 관찰치를 대상으로 하여 최고경영자를 교체한 2.971 관찰치의 상대적 가치관련성의 변화를 분석하였고, 신임경영자의 취임 초기 이익조정 행태가 가치관련성에 미치는 영향을 분석하기 위하여 4,810 관찰치의 가치관련성의 변화를 분석하였다. 실증분석의 주요한 결과를 요약하면 다음과 같다. 첫째, 전체표본에 대한 분석에서 최고경영자를 교체한 기업의 순이익은 가치관련성이 하락하는 반면 순자산 장부가치의 그것은 상승하는 경향이 관찰되었다. 이는 최고경영자의 이익조정으로 순이익 수치와 기업의 실질가치의 변동 간의 괴리가 증폭됨에 따라 순이익의 가치관련성이 저하된 반면, 신임 최고경영자의 'big bath' 등의 보수적인 회계처리로 인하여 순자산장부가치가 실질가치에 보다 접근하는 결과가 나타나 장부가치의 가치관련성은 향상된 것으로 판단된다. 둘째, 신임 최고경영자의 취임 초기에 순이익의 가치관련성은 하락하였으나 순자산 장부가의 가치관련성은 상승한 것으로 나타났다. 이러한 현상도 최고경영자 교체기업의 분석 결과와 같이 신임경영자의 이익조정 등의 행태가 시장에 부정적인 영향을 미쳐 주당순이익의 가치관련성은 감소하였지만, 최고경영자의 취임 초기 보수적인 회계처리로 주당순자산의 가치관련성은 증가한 것으로 보인다. 본 연구는 2004년부터 국내 상장사를 대상으로 최고경영자 취임 초기의 이익조정 행태로 인한 가치관련성을 국내 최초로 분석한 결과를 제공하였다는 점에서 공헌점을 갖는다.

• 아태비즈니스연구
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• 제14권4호
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• pp.275-287
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• 2023

Purpose - The purpose of this study is to analyze the relationship between the issuance amount of subordinated bonds and firm value, aiming to determine how subordinated bonds are evaluated in the capital market. Design/methodology/approach - To achieve the research objective, this study empirically analyzes all samples of domestic listed insurers that have issued subordinated bonds. Through such empirical analysis, the study aims to confirm the value relevance of the recognized debt and examine how subordinated bonds are reflected in the firm valuation of insurers. Findings - The research finding indicates that subordinated bonds issued by insurers, despite being recognized as debt, did not show a significant relation with firm value. This result suggests a divergence from the typical characteristics of debt, reflecting the distinct evaluation of debt recognized through the issuance of subordinated bonds(subordinated debt) and general debt in the capital market. In this regard, additional investigation into the value relevance by categorizing debt into general debt and subordinated debt revealed a significant difference in the value relevance of the two types of debt. Research implications or Originality - These research findings indicate that the market evaluation of subordinated debt takes into consideration the economic attributes of the subordinated debt. Furthermore, this evaluation is interpreted to account for the regulatory consideration that recognizes subordinated debt as available capital for supervisory purpose.