Earticle

초록

영어

In contrast to existing work that focuses on independent firms, we examine earnings management behaviors of firms affiliated with business groups, using unique dataset for Korean chaebols for 1993- 2007. Contrary to predictions of agency theory, we find that group firms are actually less engaged in earnings management than non-group firms, and we offer controlling family’s concern for group reputation as explanations. Group firms also are shown to use more real cash flow-based earnings management than discretionary accruals management. The results are robust with respect to the method of control sample construction, alternative models and group definitions, and endogeneity. There is also evidence that corporate reforms undertaken in the aftermath of the Asian financial crisis, including regulations on audit and consolidated group-wide financial statements, appear to have mitigated the use of earnings management by group firms. These results are consistent with the notion that concern on group reputation may mitigate agency-based opportunistic earnings management behaviors.

목차

Abstract
 1. Introduction
 2. Hypotheses development
 3. Estimating framework
  3.1. Discretionary accruals measures
  3.2. Real earnings management measures
 4. Data and descriptive statistics
 5. Main empirical results
  5.1. Discretional accruals management
  5.2. Real earnings management
  5.3. Accrual-based earnings management vs. real earnings management in group firms
  5.4. Group reputation
  5.5. Impact of group characteristics
 6. Robustness
  6.1. Impact of alternative definition of groups
  6.2. The Asian financial crisis
  6.3. Accounting reforms: Audit and consolidated financial statements
  6.4. Endogeneity
 7. Conclusion
 References
 Table
 Appendix

키워드

저자

• Jongmoo Jay Choi [ Temple University ] corresponding author
• Moo Sung Kim [ Temple University ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330