이익평준화 기업의 빅배스 = Big Bath of Companies Performed Income Smoothing

다국어 초록 (Multilingual Abstract)

[Purpose] The purpose of this study is to analyze the relationship between the distribution and distribution of companies before the Big－bath and the Big－bath. If a company with low earning volatility wants to perform the Big－bath, it will consider not only short－term effects but also long－term effects. The behavior of the Big－bath in the year of occurrence and the period after will differ depending on the characteristics of earning volatility before the Bigbath. If a company with low earning volatility performs the Big－bath, it is expected that there will be an incentive to recognize the decline in the quality of earnings caused by this as a temporary phenomenon. Companies with low earning volatility are expected to recover to their previous earning level faster in the period after the Big－bath occurs.
[Methodology] First, this study aims to analyze whether the behavior of the year of occurrence and the period after Big－bath varies according to the earning volatility before Big－bath. It analyzes whether the downward earning adjustment in the year of Big－bath occurrence is smaller than that of companies with lower earning volatility, and whether the upward earning adjustment in the period after the Big－bath occurrence is greater than that of companies with higher earning volatility before Big－bath. Second, it analyze the hypothesis that the higher the earning volatility before Big－bath, the greater the upward earning adjustment for the year after Big－bath than those with lower earning volatility before Big－bath.
[Findings] This study found that corporate earning volatility had a meaningful effect on the Big－bath. In other words, it was found that companies with higher earning volatility performed a more aggressive Big－bath. However, after performing the Big－bath, no result was found that the earning regression phenomenon was significantly affected by the corporate earning volatility.
[Implications] This study is significant in that it presents the results that a company’s Bigbath selection is also affected by the distribution of earnings. In other words, it was found that the distribution of earnings directly connected to corporate value ultimately affects the Big－bath by different focus from previous studies that have investigated the impact on the Big－bath, focusing on the characteristics of managers. The contribution of this study is that it presented the basis for the prediction that companies with relatively low earning volatility will perform the Big－bath more passively and will not deviate significantly from the low earning volatility that has been maintained so far.