Effects of SM-sized Manufacturing Firm Management Performance: Control Effect of CEO Characteristics and Mediating Effect of Core Competence

Young-Dong Roh,Sang-Beom Park 한국유통과학회 2018 The Journal of Industrial Distribution & Business( Vol.9 No.11

Purpose – For small and medium sized firms, CEO characteristics are main factor influencing firms’ prosperity as well as performance. So it is quite natural that many people are interested in factors of CEO that matters. In this research, CEO characteristics in terms of capabilities and skill or special knowledge necessary to run the business are invested for manufacturing firms. Precedent studies reveal that CEO characteristics such as psychological factors including desire to succeed, tendency to take risks, personal factors including age, year of running business, and task related factors including managing capability, communication skills, network influence firm performance for manufacturing firms. However, these studies simply verify whether or not those factors affect firm’s managing performance. This study, however, goes further to investigate how is the affecting process from CEO’s capabilities and organization characteristics to firm’s core competence, and from core competence to advantages, and from advantages to managing performance. Research design, data, and methodology – We make a questionnaire and surveyed manufacturing firm CEO’s in Gyeonggi-do area. General characteristics analysis, factor analysis, regression analysis, and control effect analysis was conducted. SPSS 2.0 Win, version was used. Results – The CEO characteristics including basic capability, task capability, leadership, and organization characteristics affect core competence at the statistically significant level. And, core competence affect both price advantage and differentiation advantage at the significant level. Some unique finding is that while differentiation advantage affects both financial achievement and non-financial achievement, price advantage does not affect both financial and non-financial achievement. And firm characteristics mainly measured by CEO characteristics of skills has control effects on the trace from core competence to price advantage. Conclusions – For small and medium sized firms CEO characteristics is the most important factor influencing firm’s prosperity. For manufacturing firms, whether CEO has the skill or special knowledge to run the firm is critical factor. The study results show that CEO’s for manufacturing firms put importance on price and price advantage which seems to be familiar to them. However, the price advantage does not influential to financial and non-financial achievement. This result suggests that small and medium sized manufacturing firms’ CEO’s should make effort to improve other aspects of advantages to be more competitive.

Characteristics of Firms Engaged in Real activity based Earnings anagement: Evidence from Korea

강선아,전성빈 한국회계학회 2010 회계학연구 Vol.35 No.2

This paper aims to examine the characteristics of firms that are suspected to be engaged in real activity based earnings management after controlling for abnormal accruals. A real activity based earnings management directly changes a firm’s underlying operations which potentially sacrifices the firm’s future cash flows whereas an accruals based one is just a way of representing the firm’s underlying activities through a choice of accounting methods. Prior research suggests that managers have incentives to use real activities even though they know that future cash flows are sacrificed for boosting current earnings by using them. We try to infer the reason why managers are engaged in real activity based earnings management by identifying the characteristics of those firms. Firm characteristics in prior studies are mostly examined for firms that manipulate earnings using only abnormal accruals as a proxy of earnings management. To observe characteristics of earnings managing firms, it is useful to investigate firms that are highly likely to manipulate earnings using real activities and/or accruals. We concentrate on a sample of right offering firms that are documented to inflate earnings to enhance stock prices before they issue new shares. We also confirm those results based on a full sample for robustness. We compare firms that are more actively engaged in real activity based earnings management with firms that are less active in manipulating earnings using real activities. Those firms classified as being engaged in real activity based earnings management for the SEO(Seasoned Equity Offering) turn out to be more mature, smaller, less flexible financially, less profitable, and having lower ownerships. It is also found that audit quality is not associated with real activity based earnings management in the SEO sample. Consistent and much stronger results are found in a full sample except the audit quality variable, i.e., higher audit quality is related with lower real activity based earnings management for the full sample. The result implies that firms offering new shares have such a strong incentive to boost their earnings that they engage in earnings management regardless of the reputation of external auditor. A main contribution of this paper is that we identify characteristics of firms engaged in real activity based earnings management, unlike prior studies which tried to identify the characteristics of firms engaged in earnings management without considering different types of earnings management. The empirical evidence provides an insight into manager’s motivations to choose earnings management tools and contribute to future studies dealing with real activity based earnings management.

감사법인특성과 감사시간,감사법인특성 결합효과의 감사품질 관련성

이재은 ( Jae Eun Lee ) 한국회계학회 2012 회계학연구 Vol.37 No.2

감사인의 품질관리감리 결과에 기초한 선행연구(Hermanson et al. 2007; 김문철·전영순 2010)에서는 감사인의 품질관리시스템 구성요소 중 인적자원관리 항목이 양호한 감사품질과 관련이 있음을 보고하였다. 본 연구는 위 선행연구에서 설명한 감사법인특성 및 감사인 소속 전문인력의 전문경력기간의 감사품질 관련성을 실증조사한다. 또한 위 감사법인특성들(감사인조직차원 감사품질지표)과 초과감사시간(개별감사업무차원 감사품질지표)의 결합효과가 갖는 감사품질 관련성도 추가조사한다. 감사품질의 대용치로는 다음 사업연도 재무제표에 전기오류수정손익을 보고했는지 여부를 사용하였다. 연구 결과, 감사법인특성들의 회계오류 관련성은 항목별로 차이가 있었다. 즉, 감사인의 전문성과 인력레버리지 관련 지표는 회계오류 감소와 유의한 관련이 있고, 비감사업무 부담 관련 지표는 회계오류 증가와 유의한 관련이 있었다. 반면에, 감사경험기간과 회계사 1인당 상장회사 수는 회계오류발생과 유의한 관련이 없었지만 초과감사시간과 상호작용효과는 회계오류 감소와 유의한 관련이 있었다. 또한 인력레버리지 비율과 파트너 1인당 비감사보수가 높을 경우에는, 초과감사시간 변수가 유의한 음의 계수 값을 가졌지만 이 변수들과 초과감사시간의 상호작용은 이러한 회계오류 개선정도를 일부 줄이는 것으로 나타났다. 이러한 조사결과는, 선행연구에서 보고한 인적자원관리 관련 감사법인특성들의 감사품질 관련성이 항목 별로 차이가 있으므로, 이들을 감사인의 감사품질지표로 사용하기 위해서는 주요 특성변수 별로 상이한 고려가 필요함 을 나타낸다. 이 결과는 감사품질지표로 단일지표보다는 다양한 지표를 활용하는 것이 필요하다는 선행연구(Bedard et al. 2010)의 주장을 뒷받침하는 것이다. 본 연구의 공헌점은 감사법인특성들이 항목별로 감사품질과 관련성이 상이함을 실증 확인한 것이다. 대표적으로, 선행연구에서 감사인의 인력레버리지 지표인 보조자-파트너 비율이 감사인의 감사품질지표로 활용 가능함과, 감사인 소속 회계사의 전문경력기간이 길더라도 그 자체로는 감사품질 개선효과가 없고 개별감사업무차원의 감사투입노력이 동시에 증가하는 경우에는 감사품질 개선효과가 있음을 확인하였다. Advisory Committee on the Auditing Profession(ACAP)(2008) and International Organization of Securities Commission(IOSCO)(2009) suggested that it is necessary to develop audit quality indicators to be included in the transparency reports of the audit firms. It also presented possible examples of the audit quality indicators classified into input and output measures. Input measures include experience (including industry experience), competency, technical resources, employee workloads, and leverage (such as associate-to-partner ratios and the percentage of senior engagement team member time spent on an audit to the total audit time for all team members). Output measures include revenue information (such as revenues by service line [e.g., audit, tax, consulting, and other], geographic region, and industry), independence violation, disciplinary proceedings and legal matters. Bedard et al.(2010) categorized the audit quality indicators in terms of firm-level versus engagement-level indicators, as well as in terms of inputs and output measures, which are consistent with the quality control standards defined by ISQC 1 (International Standard on Quality Control No. 1)(International Auditing and Assurance Standards Board[IAASB] 2004). They argued that a single audit quality indicator is not a focus, rather they are to require reporting a number of different indicators so that the combination gives a multi-dimensional picture of audit quality. Researches related to audit quality in line with the argument include Hermanson et al.(2007) and Kim and Cheon(2010) which reported that, according to quality control investigations by U. S. Public Company Accounting Oversight Board (PCAOB) and the Financial Supervisory Service (FSS), certain audit firm characteristics related to human capital management could affect the auditors` quality control system, and, accordingly, are significantly associated with their audit quality. The above studies referred to various audit firm characteristics such as the associate-to-partner ratio, the professional staff-to-total employee ratio, and average involvement of partners or professional staffs per public company client. Based on these studies, I empirically tested what audit firm characteristics are significantly associated with the audit quality. Also, I see whether the average length of audit experience by the audit firms` professionals are associated with the audit quality. This is to examine controversy in Korea whether audit quality of large- and small-sized audit firms are different or not; ones argue that large firms have better quality while the others explain that their quality differences are not significant since small firms` professionals have longer experiences in average to compensate for the less organized firm. In addition, I note that the above audit firm characteristics are firm-level indicators as categorized by International Standard on Quality Control No 1.(ISQC 1)(IAASB 2004) and Bedard et al.(2010); I examined the combined effects of the firm-level indicators and (excess) audit hours on audit quality. Audit hour is an engagement-level indicator explained by Bedard et al. (2010) representing input of audit efforts in the engagement level. Prior period adjustments reported in the subsequent year were used as audit quality proxy. Samples are 1,584 firm-years of non-financial public companies listed in the Korea Stock Exchange with fiscal years ending December 31 from 2003 to 2009, which comprise of 503 firm-year of test samples (error firms) and 1,081 firm-year of control samples. I found that various audit firm characteristics are differently associated with audit quality; i.e. their significance and directions (positive or negative relationship) are not consistent. Specifically, variables representing auditor competency (average audit fees per partner) and audit firm`s human capital leverage (the associate-to- partner ratio, the registered CPA-to-partner ratio, and the professional staff-to- total employee ratio) are significantly associated with good audit quality (i.e. lower prior period adjustments reported in the subsequent year). A variable representing auditor workloads (average non-audit fees per professionals) is significantly associated with bad audit quality. The numbers of public company clients per professional staff or partner do not have significant relationship with audit quality. In addition, the combined effects of the audit firm characteristics and excess audit hours are not consistent, either. Specifically, if the average number of listed company clients per professionals are larger, then incremental improvements in audit quality upon more excess audit hours become higher. However, if the audit firm`s human capital leverages are higher, then the combined effects of the characteristics and excess audit hours made their aggregate audit quality improvements smaller. Similarly, if the average non-audit fees per partner is larger, then the combined effects of the characteristics and excess audit hours made their aggregate audit quality improvements smaller, too. These results indicate that various audit firm characteristics, and excess audit hours combined therewith, have different associations with the auditors` audit quality in terms of significance and directions (positive or negative relationship). Meanwhile, average length of audit experience of professionals belong to the auditors didn`t show significant relationship with audit quality, but its combined effect with excess audit hours is significantly associated with good audit quality. This result also has regulatory implication because it negates the argument that small or medium-sized audit firms do not necessarily have worse audit quality because of length of audit experience are longer than those of large audit firms. This study`s contribution is to find that various audit firm characteristics have different association with audit quality in terms of significance and directions. Specifically, I found that associate-to-partner ratio, a proxy for audit firm`s human capital leverage, could be used as an audit quality indicator. Also, average length of audit experiences of the individual professionals who belong to the audit firms, is not associated with audit quality; rather its combined effects with excess audit hours representing the audit efforts in the engagement-levels only showed significant association with good audit quality.

감사법인특성과 회계정보가치관련성의 관계

이재은,윤재원 한국세무학회 2014 세무와 회계저널 Vol.15 No.2

Recent regulatory changes in accounting and audit practice are attending to audit qualityimprovements and investors’ perceptions thereon, which is now moving to identification of auditquality indicators and their disclosures to assist the investors’ evaluation of audit quality. Traditionalaudit researches and practice literature provide discussions on audit firm characteristics to be usedas possible audit quality indicators. Specifically, Big 4 firm, auditor’s industry expertise, (abnormal)audit hours and audit fees could be included as representative audit quality indicators covered bythe previous literature. Audit firm characteristics are comparable to client characteristics alsocovered by other audit researches (Hermanson et al. 2007;Lawrence et al. 2011, etc.). Morerecently, Hermanson et al. (2007), Kim and Cheon (2010), and Lee (2012), among others, focusedon audit firm characteristics identified by the regulator’s inspection reports or quality control reviewresults. Furthermore, the European Union (EU)(Article 40 of the EU 8th Company DirectiveDirector) has already established a registration to require audit firms auditing public companieslisted in the EU jurisdictions to file and disclose transparency reports to provide the investors withinformation about the audit firm’s quality controls, operation results and various audit qualityinformation. Similar regulations for Korean audit firms are established in 2003 from when Koreanaccounting firms should file annual reports with the Financial Supervisory Service (“FSS”). Subjects underlying all these discussions and development is related to a traditional controversyabout definition of audit quality;recent literature and academic researches are beginning to covervarious aspects of audit quality. e.g. the Advisory Committee on the Auditing Profession(ACAP)(2008), the International Organization of Securities Commission;IOSCO)(2009), Bedardet al. (2010), and Francis(2011) discuss feasibility of such audit quality indicators. They alsopresented various examples of audit quality indicators classified in terms of input vs. outputmeasures or audit firm-level vs. engagement-level indicators. Specifically, the IOSCO illustratedvarious audit quality indicators and the related groupings of categories. With regard to the auditquality indicators, Francis (2011) explained that there is insufficient research to know if this kind of aggregated information can tell us something about audit quality, and said that the IOSCOreport is just a list which are not rigorously investigated. We are to fill this gap. We identify ten audit firm characteristics for the experimental variablesbased on the previous studies (Hermanson et al. 2007;Kim and Cheon 2010;Lee 2012), andinvestigate their relationship with value relevance of earnings focusing on two aspects. First, wesee whether value relevance of audited accounting information are different according to auditfirm characteristics which the previous studies reported they are associated with good (or bad)audit quality. Second, the investors are likely to consider the auditor characteristics more seriouslyin their investment decisions after regulatory changes that the FSS began to attend to thecharacteristics during its review of audit firm’s quality control systems in 2007;we examinewhether such regulatory change has impacts on value relevance of earnings according to the auditfirm characteristics. We used Ohlson (1995) model to investigate the effects of the audit firmcharacteristics on value relevance of audited accounting information. In the model, controlvariables of size, leverage, return on assets, and year, industry and audit firm dummies areincluded in the models to mitigate potential effects of selection bias. Our results generally indicate that investors perceive positively (negatively) incremental valuerelevance of audited earnings information according to audit firm characteristics generally relatedto g... 선행연구(Hermanson et al. 2007;김문철․전영순 2010;이재은 2012)에서는 감사인의 품질관리에 관련된 인적자원관리 특성을 나타내는 감사법인특성이 감사품질과 관련이 있음을 보고하였다. 본 연구는 선행연구에서 조사한 감사법인특성과 감사품질의 관련성에 대한 투자자들의 인식차이를, 순이익 가치관련성의 체계적 차이 유무를 통해서 실증조사한다. 실증조사 결과, 투자자는선행연구에서 양호(불량)한 감사품질과 관련이 있다고 보고한 감사법인특성에 대해서 대체로 긍정적(부정적)으로 인식하는 것으로 나타났다. 또한 감사법인특성을 주목하게 한 금감원 품질관리감리제도의 시행 전․후를 비교한 결과, 감사법인특성들에 따른 순이익 가치관련성은 동 제도의 시행이후 유사한 방향으로 증가 또는 감소하였다. 다만 제도시행 전․후 변동의 유의수준과 항목별로다소 낮게 나타났다. 이는 투자자들도 선행연구에서 보고한 방향(긍정 또는 부정적)과 유사하게 감사법인특성이 감사품질과 양 또는 음의 관계가 있다고 인식함을 나타내며, 제한적이기는 하지만이러한 인식은 회계감독제도의 변화에 따라 더 강화된 측면이 있다.

기업소송, 자본비용 및 기업특성

박종일 ( Jong Il Park ),신재용 ( Jae Yong Shin ) 한국회계학회 2014 회계학연구 Vol.39 No.4

본 연구는 피고로 실제 소송이 제기된 기업들에 대한 시장반응을 자본비용 관점에서 살펴보았다. 피고로 소송이 계류중인 기업은 미래 현금흐름의 추정에 있어 불확실성의 노출정도가 클 수 있으므로, 이들 기업의 정보위험은 높을 수 있다. 따라서 본 연구는 소송발생기업이 자본조달시 투자자들은 위험 프리미엄을 추가로 요구할 것으로 예상되어 기업의 자본비용은 증가될 것으로 기대하였다. 또한 당기 계류중인 소송사건이 감사인의 판단에 따라 감사보고서의 특기사항으로 보고된 경우 해당 소송사건의 미래 현금흐름에 대한 불확실성 정도가 더 높을 수 있으므로, 자본비용이 증가될 것으로 기대된다. 이와 더불어 본 연구는 국내기업소송이 발생된 경우 어떤 기업특성과 보다 밀접한 관련성이 있는지를 알아보기 위하여 로지스틱 회귀분석을 이용하여 분석하였다. 이를 위하여 본 연구는 감사받은 재무제표의 주석 및 감사보고서에서 소송사건 자료를 수작업으로 수집해 분석하였다. 자본비용의 측정은 기업평가에 전문성이 있는 NICE신용평가정보(주)의 KISVALUE에서 제공되는 가중평균자 본비용이 이용되었다. 분석기간은 2003년부터 2007년까지이며, 표본은 유가증권시장 상장기업 중 금융업을 제외한 12월 결산기업으로 분석에 이용가능 했던 최종표본 2,302개 기업/연 자료가 분석되었다. 본 연구결과는 다음과 같다. 첫째, 일정 변수들을 통제한 후에도 소송발생기업은 비소송발생기업보다 자본비용이 유의하게 더 높게 나타났다. 또한 계류중인 소송사건이 감사인의 판단에 따라 감사보고서의 특기사항으로 기재된 기업이면 자본비용이 더 높게 나타났다. 한편, 소송건수와 소송금액이 큰 기업의 자본비용이 더 높은지를 추가분석한 결과, 예상과 일치된 결과로 나타났다. 둘째, 국내에서 피고로 기업소송이 발생된 경우의 결정요인을 알아본 결 에 따르면, 다른 기업특성보다도 기업신용등급이 낮은 기업일수록 소송발생 가능성은 높은 것으로 나타났다. 또한 이외에도 총자산이익률이 낮고, 체계적 위험이나 주식수익률의 변동성이 낮을수록, 대주주 또는 외국인투자자 지분율이 낮을수록, 과거 3년간 손실 빈도가 클수록, MTB가 클수록, 부채비율이 높을수록 기업소송의 발생가능성과 양(+)의 관계가 있는 것으로 나타났다. 그리고 기업소송은 주로 다른 산업보다 건설업과 도소매업에서 발생가능성이 높게 나타났다. 하지만 외국과 달리 기업의 이익조정이나 감사인 특성의 경우는 소송발생가능성에 영향을 주지는 않았다. 본 연구는 잠재적 소송위험의 대용치 대신 실제로 기업소송이 발생된 경우를 대상으로 이들 기업소송에 대한 시장반응을 자본비용 측면에서 살펴보았고, 뿐만 아니라 국내 기업소송에 대한 기업특성이 무엇과 관련성이 있는지를 분석했다는 점에서 의미가 있다. 따라서 본 연구결과는 학계의 관련연구에 추가적으로 공헌할 것으로 기대된다. 또한 국내 기업소송을 이해하는데 있어서도 도움이 될 수 있고, 그러한 점에서 실무계, 규제기관 및 정책담당자에게도 본 연구의 발견은 여러 유익한 정보와 시사점을 더불어 제공해 줄 것으로 예상된다. This paper investigates the market`s response to the occurrence of the actual corporate lawsuits in terms of the effect on the cost of capital. Lawsuits increase the investor uncertainty in estimating future cash flow, leading to higher information risk. Therefore, firms facing lawsuits would have a higher cost of capital to compensate investors for the additional information risk. Furthermore, if the auditor deems the lawsuit significant and reports it in the audit report as a part of footnotes, then it implies that auditors judge the effect of lawsuit, if firms lose in the lawsuits, is significant for the firm and auditors believe that the chance of the firms losing in the lawsuit is reasonably high. As a result, investor use the information contained in the audit report in their decision-making. Thus, the uncertainty of future cash flows will be even higher for such firms, further increasing information risk and thus the cost of capital. Also, our analysis employs logistic regression analysis to examine which firm characteristics tend to be more associated with the occurrence of corporate lawsuits. We use credit risk, the magnitude of discretionary accruals and real earnings management, auditor characteristics, industry characteristics, and others as the firm characteristics which potentially influence the occurrence of corporate lawsuits. We manually collect footnotes and lawsuit data from audit reports. The audit reports of Korean firms are disclosed in Data Analysis, Retrieval and Transfer System ("DART") website which is provided by Korean Financial Supervisory Service. The cost of capital was based on the Weighted Average Cost of Capital retrieved from the KISVALUE LIBRARY database of NICE Investors Services, an expert in firm analysis. Our sample consists of companies listed in the Korea Stock Exchange from 2003 to 2007. We restrict our sample for firms whose fiscal year ends in December to maintain consistency. Furthermore, we exclude financial firms in our sample which are significantly different from other types of firms. Finally, we use a total of 2,302 firm-year observations, of which 891 firm-year observations faced lawsuits, and 157 firm-year observations had the respective lawsuits mentioned in the qualified audit report. The results of our empirical analyses are summarized as follows. First, we find that firms facing lawsuits have a significantly higher cost of capital than firms without lawsuits, even after controlling for the factors which could affect cost of capital. As expected, firms also have higher cost of capital when the auditor noted the lawsuit in the qualified audit report. Cost of capital is also positively associated with the number of lawsuits and the amount of claim for lawsuits, which are recorded in the audit report. These results imply that if a corporate lawsuit is significant enough to be mentioned in the qualified audit opinion, it implies that there is higher information risk due to the increasedinvestor uncertainty of future cash flows. In conclusion, corporate lawsuits induce a higher cost of capital to induce the additional risk premium. Second, firms with lower corporate credit ratings have a significantly higher possibility of facing lawsuits. Firms with lower return on assets, lower systematic risk, lower stock return volatility, smaller percentage of major shareholder or foreign investors` ownership, higher market to book ratio, and higher debt ratio have a significantly higher possibility of facing corporate lawsuits. Furthermore, more frequent losses in the past 3 years lead to the increased probability of facing corporate lawsuits. Also, corporate lawsuits are more common in the construction industry and the wholesale industry than any other industry. Unlike the findings in prior studies in the U.S., corporate lawsuits in Korean firms display no significant association with the magnitude of earnings management (measured by the degree of discretionary accruals and that of real earnings management) or auditor characteristics (Big 4 auditor indicator variable). The findings in the U.S. studies indicate that firms with aggressive earnings management and firms with big 4 auditor suffer more litigation risk. However, we argue that the most important reason why a Korean firm becomes defendants of lawsuits is related to the drop in the company`s profitability or the problems in financial stability of the company, rather than earnings management by firm or potential big pockets of auditor. The main contributions of this study are summarized as follows. First, this paper extends prior literature by examining actual firms facing lawsuits instead of potential litigation risk proxies, and by looking into the market response to these lawsuits in terms of the effect on the cost of capital. Second, we find that the specific contents in audit reports such as the corporate lawsuits play an important role in the formation of firm value. In other words, investors consider the important information contained in the footnotes of audit reports when they estimate the cost of capital. Third, our results reveal the association between firm characteristics and corporate lawsuits. Hence, we add to the existing literature on corporate lawsuits. Combined together, our study sheds light on the growing number of lawsuits filed against Korean firms. These findings could be interesting and provide valuable implications to practitioners, regulators, and academics.

재무보고시점과 세무보고시점의 차이에 따른 이연법인세 공시의 적정성과 기업특성

김상헌 ( Sang Hun Kim ),배수진 ( Su Jin Pae ),심태섭 ( Tae Sup Shim ) 한국회계학회 2009 會計學硏究 Vol.34 No.2

세무보고시점에는 세무조정계산서를 통해 최종적인 세무조정 항목과 금액이 정확히 공시되는 반면, 재무보고시점에는 감사보고서를 통해 이연법인세 계산을 위한 임시적 세무조정항목과 금액이 공시될 수 있다. 실무적으로 조기결산에 대한 사회적 요구의 증가로 인해 재무보고시점이 세무보고시점보다 빨라지고 있으며, 재무보고업무와 세무보고업무의 성격 자체가 상이하므로 두 시점사이에 세무조정 항목과 금액의 오차가 발생할 가능성이 존재한다. 이에 본 연구에서는 2004년부터 2006년까지 거래소 상장기업 중 제조업에 속하는 1,089개(기업-년) 표본을 대상으로, 재무보고시점과 세무보고시점에 공시하는 구체적인 세무조정 항목과 금액을 이용하여 일시적차이 및 영구적차이 오차의 발생현황 및 오차를 발생시키는 기업의 특성에 대해 실증적으로 분석하였다. 먼저 재무보고시점과 세무보고시점 오차의 발생을 분석한 결과, 일시적차이의 오차의 중위수가 음(-)의 값으로 관찰되어, 재무보고시점에서 이루어지는 일시적차이에 대한 부정확한 공시가 가급적 많은 차감할일시적차이나 적은 가산할일시적차이를 보고하는 방향으로 나타나고 있었다. 반면, 영구적차이의 오차의 중위수는 양(+)의 값으로 관찰되어 재무보고시점에서 영구적차이의 오차의 공시가 가급적 많은 가산할영구적차이나 적은 차감할영구적차이를 보고하는 것으로 나타났다. 이러한 부정확한 일시적차이 및 영구적차이의 오차의 공시는 결과적으로 이연법인세자산·부채를 왜곡시켜 대차대조표에 영향을 미치는 동시에 법인세비용에 영향을 미쳐 손익계산서상 당기순이익을 왜곡시킬 수 있다. 다음으로 재무보고시점과 세무보고시점의 오차에 영향을 미치는 기업특성을 분석한 결과는 다음과 같다. 첫째, 재무보고시점과 세무보고시점의 일시적차이의 오차만을 대상으로 분석한 경우, 경영성과와 재무구조가 양호하지 못한 기업일수록, 기업의 규모가 작을수록 그리고 내부지분율이 높은 기업일수록 재무보고시점에 상대적으로 양(+)의 일시적차이의 오차를 보고하는 것으로 나타났다. 둘째, 영구적차이의 오차만을 대상으로 분석한 경우에는 재무보고시점이 빠를수록, NonBIG 회계법인에게 감사를 받을수록 재무보고시점에 양(+)의 영구적차이의 오차를 보고하는 것으로 나타났다. 본 연구의 결과는 재무보고시점과 세무보고시점의 차이에서 발생하는 일시적차이 및 영구적차이의 오차가 이연법인세의 계산을 부정확하게 함으로써 결과적으로 기업이 공시하는 재무상태 및 회계이익의 신뢰성에 유의한 영향을 미칠 수 있음을 시사하고 있다. 따라서 관계감독당국은 감리 등의 적극적인 방법을 통해 기업들이 재무보고시점과 세무보고시점의 세무조정 항목과 금액의 오차를 실질적으로 감소시킬 수 있는 회계시스템을 유지하도록 유도할 필요가 있다. 또한 감사인 입장에서도 부정확한 법인세회계 관련 공시에 대해 보다 적극적인 감사절차를 수행함으로써 회계정보에 대한 신뢰성 향상과 함께 감사품질을 높일 수 있을 것으로 기대된다. When a tax return is filed, tax reconciliation items and amounts are exactly disclosed through the tax return, but when a financial information is reported, temporary items and amounts for calculating deferred corporate tax are disclosed through an auditor`s report. In practice, because a financial report precedes a tax report and the purposes of what they report are different, an error in permanent or temporary differences may occur. If errors in temporary differences occur, the assets and liabilities are incorrectly disclosed on the balance sheet and thus the financial status of a corporation is distorted. And errors in permanent differences affect corporate tax expenses and accounting income. The exact disclosure of tax returns becomes the source of calculation of deferred income tax. Therefore, the study related to deferred income tax is required to be made from the basic standpoint of the exact disclosure of tax return. However, most of prior studies have focused on earnings management using deferred income tax, realizable possibility of deferred income tax assets and value relation of deferred income tax. Therefore before evaluating empirical results of prior studies related to deferred income tax, it is necessary to examine the accuracy of tax reconciliation items and amounts. Accordingly, this study examined the errors in temporary and permanent differences occurring from book-tax timing differences(differences in the time between a financial and a tax report) using corporate tax-related materials disclosed by a firm. This study also empirically analyzed firm characteristics which can generate such errors. For this analysis, we estimate the empirical model containing the seven firm characteristics discussed following using OLS regression. Specifically, we use the seven firm characteristics that focus on reliability of the disclosure on deferred tax: (i) Debt ratio(proxy of financial structure), (ii) Size of total assets, (iii) ROA(proxy of financial performance), (iv) Book-tax timing differences between points of time of a financial and tax report, (v) Size of external auditor, (ⅵ) Foreign investor ownership and (ⅶ) Principal stockholder ownership. Based on the explanation discussed above, we test the following hypothesis. (i) the poorer financial performance and financial structure are, the larger errors in temporary or permanent differences are reported, (ii) the longer book-tax timing differences between points of time of a financial and tax report are, the larger errors in temporary or permanent differences are reported, (iii) the higher ratio of foreign ownership and principal stockholder ownership are, the larger errors in temporary or permanent differences are reported. The sample selection procedure is summarized as follows; Our initial sample consists of 1,260 observations(firm-year) available on TS 2000 belonging to manufacturing industry with December fiscal years listed on the Korea Stock Exchange from 2004 to 2006. From these total observations, we exclude 131 observations (missing financial data and temporary and permanent differences data). We also delete the top and bottom 1% of dependent and independent variable to mitigate the effects of extreme observations. Accordingly, we exclude 40 observations because of deletion of the outlier. Of the remaining 1,089 observations, 399 observations(about 37% of the total samples) have the errors in temporary differences and 152 companies (about 14% of the total samples) have the errors in permanent differences. When total samples with an error were classified to subsample according to whether errors repetitively occurred or not, it was found an error occurred more than twice in 36% of them. It means that an error tends to be comparatively repeated. Firms adjusted errors not through modification of the current financial statements but through the notes related to deferred corporate tax of the next year audited statements. This means that most of companies calculate deferred tax through tentative tax adjustment for only calculating accounting profits and subsequently report a true tax amount to be paid through exact tax adjustment. The analysis results are as follows. First of all, it was found that the median of errors in temporary differences was a negative value and the median of errors in permanent differences was a positive value at the point of time of a financial and tax report. This means that more deductible temporary difference or fewer taxable temporary difference tend to be reported and more taxable permanent differences or deductible permanent differences tend to be reported at the time of a financial report. The disclosure of errors in incorrect negative temporary differences leads to overstatement of assets and liabilities. Also, the errors in positive permanent differences may result in a increase of net income through an decrease in corporate tax. In the second place, the results of analysis of firm characteristics affecting the errors occurring between the time of a financial and tax report are as follows. First, it was found that a firm with the poorer financial performance and financial structure, the smaller total assets and the higher ratio of principal stockholder ownership, tends to report the lower deductible temporary differences and the higher taxable temporary differences when a financial report is made. This leads to understatement of assets and liabilities and misstatement of debt ratio. Also it may inform outside interested parties with underestimation about cash outflow. Second, it was found that a firm having the larger book-tax timing differences and being audited by the Non-BIG, tends to report fewer deductible permanent differences or more taxable permanent differences when making a financial report. This is likely to understate accrued corporate tax that is to be disclosed as of the day of balance sheets and leads outside interested parties to underestimate cash flow related to corporate tax. Simultaneously, this may lead to a decrease of corporate tax expense to be reported in income statements and result in an increase of accounting income which are ultimately reported. In the meantime, errors of temporary and permanent differences were classified according to whether or not they repetitively occurred. The group was divided into the one in which each error occurred once and the one in which each error occurred twice, and analysis of firm characteristics affecting errors was made. As a result of analysis, the occurrence types of errors according to variables of firm characteristics were more remarkably discovered in the firm in which each error repetitively occurred over twice than the one in which each error occurred once. Finally, this study analyzed sensitive test classifying size of error by absolute value, because the errors in temporary differences and in permanent differences have a large gap in size of absolute value. The result of additional test indicated that firms in which the absolute value of error took place in large scale have similar firm characteristics with those where error occurred more than twice. This study implies that temporary and permanent differences occurring from booktax timing differences(differences between points of time of a financial report and a tax return) may lead to incorrect calculation of deferred corporate tax and thus greatly affect the reliability of financial status and accounting income publicly announced by a corporation. Accordingly, it is required that a supervising agency should recommend firms to maintain an accounting system in which they can actually reduce errors related to corporate tax through active methods such as supervision. Also, from the standpoint of an auditor, it is expected to improve the reliability of accounting information as well as audit quality by paying attention to audit procedure of incorrect corporate tax. In the meantime, this study had some limitations in that it conducted an analysis excluding the effect owing to valuation of deferred tax assets with respect to realizability of future tax expense and thus it would be necessary to consider additional firm characteristics variables occurring errors which were not found out in this study. In other words, future studies should elaborately examine the associations between the book-tax timing differences and firm characteristics. It is also expected that precise analysis of concrete account item affecting the error of tax reconciliation items and amounts will propose more useful information on deferred income tax.

CHARACTERISTICS OF FIRMS UDERTAKIG BUSIESS RESTRUCTURIG THROUGH DISCONTINUANCE OF OPERATIONS

Yoo, Chung Eul 경기대학교 교육대학원 1998 경기교육논총 Vol.7 No.-

The sample distribution among Unprofitable, Profitable. and Uncertain DOs is quite different between small and large firms. Small (large) firms more often discontinued Unprofitable (Profitable) DOs. One explanation is that large firms may need to discontinue operations even though they are profitable in order to improve size-related operating inefficiencies and/or to implement strategic organizational restructuring programs. On the other hand, since small firms are less subject to diseconomies of scope and thus less involved in organizational restructuring, they might miss timely decisions on taking strategic action before operations become unprofitable. The empirical analysis of firm characteristics shows that firms with Profitable DOs experience much higher ROE than firms with Unprofitable DOs during the two preceding years prior to the event year although the gap narrows down thereafter. The empirical results also show that, on average, firms with Profitable DOs maintain higher debt-equity ratios than firms with Unprofitable DOs. In addition, the examination of return characteristics reveals that firms with Profitable DOs maintain the higher level of both systematic risk and six-month returns than firms with Unprofitable DOs. DOs, however, provide a different impact on the change in systematic risk of a firm. Following the announcement of DOs, the firms with Profitable DOs experience a slightly upward shift in systematic risk whereas the firms with Unprofitable DOs experience a somewhat steep downward shift. The empirical analysis also indicates that DOs are generally announced after firms experience a period of decreasing returns. suggesting that DOs may be announced as part of management's positive resolution for better economic conditions of a firm. Comparisons of EPS ratios of OR between small and large firms reveal that, except for Profitable DOs, large firms have much smaller mean and median EPS ratios than small firms. Likewise. large firms have much lower median EPS ratios of GL than small firms although mean EPS ratios are not quite different. Small firms are more likely to announce Unprofitable DOs with large EPS ratios of both OR and GL. When small firms announce Profitable DOs, EPS ratios are relatively small. On the other hand, large firms are more likely to announce Profitable DOs where EPS ratios of OR are large relative to those of GL. The sample firms suffer negative earnings growth in all subsamples, suggesting firms announcing DOs experience poor earnings performance, It seems that discontinuance of unprofitable operations does not help change the economic conditions any better. presumably because that the firm has missed the timely decision regarding the business restructuring. Firms discontinuing profitable operations suffer negative earnings growth in the event year y and the following year y + l due to dropping profitable operations but experience much improved E/G ratio in the year y + 2, suggesting the management's positive resolution hypothesis. Firms with Profitable DOs experience the higher E/G ratios than firms with Unprofitable and Uncertain DOs. Examining the market reaction to DOs with regard to the underlying motivations may be another direction for the future accounting research in this area. For instance, firms might have announced DOs for the following economic and/or financial reasons : 1) to avoid merger attempts by competitors. 2) to finance better investment opportunities, 3) to reorganize the firm to survive, 4) to diminish the current debt burdens. 5) to lower the overall risk of the business, etc. The stock market might respond differently to each of the above distinctive signals.

지주회사 전환 후 자회사의 기업가치에 영향을 미치는 기업특성

김수정,오원정 세명대학교 인문사회과학연구소 2022 人文 社會科學硏究 Vol.30 No.1

· Research topics: This study analyzes the firm value of subsidiaries inside holding company system and explores firm characteristics that influence the firm value. · Research background: The holding company system was introduced to improve corporate governance and increase management efficiency through separation of investment and operation. However, it has recently been pointed out that the controlling shareholder seeks to expand control or tunneling in the holding company system. Accordingly, the government is tightening regulations on the behavior of holding companies and the National Assembly is proposing bills to prevent side effects. Since stricter regulations can reduce firm value by limiting business activities, it is necessary to examine the effect of the holding company system on firm value. · Differences from prior research: This study expands the research period and research subjects compared to previous papers that studied the firm value of subsidiaries inside holding company system, and examines the firm characteristics that affect the firm value of subsidiaries. · Research method: Using a sample of Korean non-financial corporations transformed into holding company system over the period 2007~2016, we examine whether the firm value of subsidiaries inside holding company system is higher than that of matching firms that are in the same industry and do not belong to the holding company system and the firm value of subsidiaries varies according to the firm characteristics of the holding company. · Research results: The empirical results are as follows. First, subsidiaries inside holding company system have higher firm value compared to their matching firms. We also find that the firm value of subsidiaries inside holding company system is higher as the holding company belongs to large business conglomerates, the number of industries of subsidiaries belonging to the holdings company is small, and the number of unlisted subsidiaries belonging to the holding company is small. The results indicate that the holding company system has a positive effect on the firm value of subsidiaries, and that the firm value of subsidiaries may differ depending on the firm characteristics of the holding company. · Contribution points and expected effects: Our findings are expected to provide implications for regulations on the holding company system. · 연구 주제: 본 연구에서는 지주회사 체제에 속한 자회사의 기업가치와 기업가치에 영향을 미치는 기업특성에 대해 분석하였다. · 연구 배경: 지주회사 체제는 기업지배구조를 개선하고 투자와 영업의 분리를 통해 경영효율성을 증가시키고자 도입되었다. 그러나 최근 지주회사 체제를 통한 지배주주의 지배력확대, 사익편취 등의 문제가 지적되고 있고, 이에 정부는 지주회사에 대한 행위규제를 강화하고 국회는 부작용을 막기 위한 법안들을 발의하고 있다. 이러한 규제 및 법안들은 기업의 경영활동을 제한하여 기업가치를 감소시킬 가능성이 있는 만큼 지주회사 체제가 기업가치에 미치는 영향에 대해 살펴볼 필요가 있을 것이다. · 선행연구와의 차이점: 본 연구는 지주회사 체제에 속한 자회사의 기업가치를 연구한 기존 선행연구보다 연구기간과 연구대상을 확장하고 자회사의 기업가치에 영향을 미치는 기업특성을 검토하였다. · 연구방법: 2007년~2016년 사이 유가증권시장과 코스닥시장에 상장되어 있는 비금융기업 중 지주회사 체제에 속한 자회사의 기업가치가 비지주회사 체제이고 동일 산업에 속한 일반회사에 비해 높은지 살펴보고, 지주회사 체제에 속한 자회사의 기업가치가 지주회사의 기업특성에 따라 달라지는지 검증해보았다. · 연구결과: 지주회사 체제에 속한 자회사의 기업가치는 비지주회사 체제이고 동일 산업에 속한 일반회사에 비해 높은 것으로 나타났다. 지주회사 체제에 속한 자회사의 기업가치는 지주회사가 대규모기업집단에 소속되어 있을수록, 지주회사 소속 자회사의 산업 개수가 적을수록, 지주회사 소속 자회사 중 상장되지 않은 기업의 개수가 적을수록 높은 것으로 나타났다. 이러한 실증분석결과는 지주회사 체제가 자회사들의 기업가치에 긍정적인 영향을 미치며, 지주회사의 특성에 따라 자회사의 기업가치가 상이해질 수 있음을 의미한다. · 공헌점 및 기대효과: 본 연구의 실증분석 결과는 지주회사 체제와 관련된 규제 및 법안들이 강화되고 있는 상황에서 규제 검토 및 구체적인 규제 마련에 대해 시사점을 제공해 줄 수 있을 것으로 기대된다.

기업특성에 따른 경영자 스톡옵션의 적정보상수준과 기업가치 증가 분석

이경태 ( Kyung Tae Lee ),이상철 ( Sang Cheol Lee ),박애영 ( Ae Young Park ) 한국회계학회 2004 會計學硏究 Vol.29 No.4

본 연구는 경영자 보상수단으로서 스톡옵션의 활용이 증가함에 따라, 기업특성에 따른 스톡옵션의 적정보상수준을 실증적으로 검토하였다. 본 연구에서는 경영자 스톡옵션 보상비중과 기업가치 간의 "∩형"의 비선형 관계를 확인하고, 비선형 관계에 따른 변환점으로 적정보상수준을 파악하였다. 또한, 기업특성을 첨단산업 소속여부, 연구개발 투자성향, 성장성, 위험수준, 전문경영자 여부로 구분하고 이러한 특성별로 기업가치를 증가시킬 수 있는 경영자 스톡옵션의 적정보상수준에 차이가 있는지를 검토하였다. 그리고 스톡옵션이 경영자에게 부여되어 기업가치가 증대되는 효과가 이러한 기업특성에 따라 차이를 보이는지 살펴보았다. 실증분석 결과, 경영자 스톡옵션 보상비중과 기업가치 간에는 비선형 관계가 있으며, 기업특성에 따라 경영자에 대한 스톡옵션의 적정보상수준에 차이가 있다는 것을 확인할 수 있었다. 즉, 첨단산업의 경우, 연구개발 투자성향이 높은 경우, 성장성이 높은 경우, 위험수준이 높은 경우, 전문경영자 기업의 경우가 그렇지 않은 특성을 보이는 기업보다 경영자 스톡옵션의 적정보상수준이 더 높은 것으로 나타났다. 그리고 경영자 스톡옵션 부여로 인한 기업가치 증가효과 역시 기업특성에 따라 차이가 있음을 확인할 수 있었다. 즉, 첨단산업인 경우, 연구개발 투자성향이 높은 경우, 성장성이 높은 경우, 위험 수준이 높은 경우, 전문경영자인 경우가 그렇지 않은 경우에 비해, 경영자에게 스톡옵션 보상이 주어지는 경우 대리인 비용을 줄이고 기업가치를 증가시키는 효과가 더욱 큰 것으로 나타났다. Firms have increased their dependence on stock options for executive compensation. This study focuses on firm characteristics that affect the reasonable weighting of stock options in executive compensation. It tries to locate empirically the optimal weight of stock options given the possibility that the relationship between the weight of stock options and firm value may be nonlinear and concave. This study investigates whether the empirical optimal weight of stock options in executive compensation is affected by a firm`s characteristics. These characteristics are industry (high technology versus others), propensity for R&D investment, growth rate, ownership of management, and risk to the firm. This study also examines whether the difference in the effect of increased firm value through executive stock options is based on these characteristics. The empirical findings are as follows: First, the relation between weight of stock options and firm value shows a nonlinear and concave pattern. Second, the empirical optimal weight of stock options is affected by a firm`s characteristics. In cases of the high technology industry, a higher propensity for R&D investment, higher growth rate, higher risk level, and professional management control of firms resulted in a higher optimal weight of stock options in executive compensation than in cases possessing the opposite characteristics. Third, these characteristics also intensify the effect of stock options in increasing firm value.

이익조정기업들의 특성에 관한 연구: 실질활동을 이용한 이익조정을 중심으로

강선아 ( Sun A Kang ),전성빈 ( Sung Bin Chun ) 한국회계학회 2010 會計學硏究 Vol.35 No.2

본 논문은 실질활동을 이용하여 이익을 조정한 기업들의 특성을 구분한다. 실질활동을 이용하여 이익을 조정하는 방법은 기업의 영업 및 투자의사결정을 조정해서 이익을 조정하기 때문에 미래현금흐름이 희생되는 특징이 있는 반면, 발생액을 통한 이익조정방법은 회계적인 선택을 이용하여 기업의 활동을 표현하는 방식을 조정하는 방법이므로 미래현금흐름과 무관한 방법으로 알려져 있다. 경영자가 당기이익을 높이기 위해 실질활동을 이용할 경우 기업의 미래현금흐름이 희생되는 것을 알고 있음에도 불구하고 이러한 방식을 선택하는 데에는 어떤 동기가 있을 것이다. 본 논문에서는 경영자들이 실질활동을 통해서 이익을 조정하는 이유를 간접적으로 찾기 위해 이러한 기업들의 특징을 분석한다. 선행연구에서 알려진 이익조정기업의 특징들은 사후적으로 이익조정이 밝혀진 기업들 또는 재량적 발생액을 이용하여 이익조정을 한 기업들에 관한 것이다. 따라서 실질활동을 이용하여 이익을 조정하는 기업의 유인을 찾기 위해서는 기존의 이익조정기업특징들로부터 실질활동을 상대적으로 더 많이 이용하는 기업들의 특징을 구별할 필요가 있다. 본 연구에서는 이러한 특징들을 찾기 위해, 주가를 높이기 위해 이익을 상향 조정하는 것으로 알려진 유상증자사건을 이용한다. 특히 이익조정 시 상대적으로 실질활동을 더 많이 이용해서 이익을 조정하는 기업들의 특징을 구분한다. 연구의 결과, 이익조정 시 실질활동을 상대적으로 더 많이 이용하는 기업들의 특징은 오래된 기업이나 규모가 작고 유동성이 낮으며 수익이 저조하고 소유권이 분산된 특징을 보였다. 연구결과의 강건성을 확보하기 위해 전체표본을 대상으로 분석을 실시한 결과도 유상증자 표본에서는 유의하지 않았던 감사품질 변수가 유의한 것을 제외하고 모든 특성들이 더욱 유의하게 나타나 본 결과의 일관성을 확인할 수 있었다. 이러한 결과는 일반적으로 외부감사의 품질이 일반적으로 실질활동을 이용한 이익조정을 어느 정도 억제할 수 있지만, 유상증자기업의 경우에는 이익조정의 유인이 강하기 때문에 외부감사품질과 무관하게 이익을 조정한 것으로 해석할 수 있다. 본 논문은 기존에 알려진 이익조정기업의 특성에는 실질활동과 발생액을 이용한 기업들의 특성이 혼재되어 있는 상황에서, 실질활동을 통해서 이익을 조정한 기업들의 특성을 구별했다는 점에서 연구의 의의가 있다. 본 연구결과는 이익조정의 대용치를 추정모형에 의존한다는 한계점을 가지고 있지만, 이익조정방법을 선택하기 위한 경영자의 동기 및 차후 실질활동과 관련된 연구에 기여할 것으로 판단된다. This paper aims to examine the characteristics of firms that are suspected to be engaged in real activity based earnings management after controlling for abnormal accruals. A real activity based earnings management directly changes a firm`s underlying operations which potentially sacrifices the firm`s future cash flows whereas an accruals based one is just a way of representing the firm`s underlying activities through a choice of accounting methods. Prior research suggests that managers have incentives to use real activities even though they know that future cash flows are sacrificed for boosting current earnings by using them. We try to infer the reason why managers are engaged in real activity based earnings management by identifying the characteristics of those firms. Firm characteristics in prior studies are mostly examined for firms that manipulate earnings using only abnormal accruals as a proxy of earnings management. To observe characteristics of earnings managing firms, it is useful to investigate firms that are highly likely to manipulate earnings using real activities and/or accruals. We concentrate on a sample of right offering firms that are documented to inflate earnings to enhance stock prices before they issue new shares. We also confirm those results based on a full sample for robustness. We compare firms that are more actively engaged in real activity based earnings management with firms that are less active in manipulating earnings using real activities. Those firms classified as being engaged in real activity based earnings management for the SEO(Seasoned Equity Offering) turn out to be more mature, smaller, less flexible financially, less profitable, and having lower ownerships. It is also found that audit quality is not associated with real activity based earnings management in the SEO sample. Consistent and much stronger results are found in a full sample except the audit quality variable, i.e., higher audit quality is related with lower real activity based earnings management for the full sample. The result implies that firms offering new shares have such a strong incentive to boost their earnings that they engage in earnings management regardless of the reputation of external auditor. A main contribution of this paper is that we identify characteristics of firms engaged in real activity based earnings management, unlike prior studies which tried to identify the characteristics of firms engaged in earnings management without considering different types of earnings management. The empirical evidence provides an insight into manager`s motivations to choose earnings management tools and contribute to future studies dealing with real activity based earnings management.