장부가치와 순이익의 상대적인 가치관련성

Abstract

We investigate whether the financial crisis influence on the value relevance of accounting figures (between net book value and net income). Specifically, we examine the differences in the value relevance of accounting figures before, during, and after the 1997 financial crisis. To support our hypothesis, additionally we analysis our main hypothesis using the probability of bankruptcy and tobin's Q. Many investors mainly use the income statement(especially net income) to evaluate the potential growth and the future cash flow of firm. However, the book value play a important role to estimate the liquidation value of firm when the firm confront the risk of bankruptcy. If we view in that kind of point, the financial crisis in Korea provide the important chance to evaluate the value relevance change. Because several firms went bankrupt or confronted the risk of bankruptcy during the financial crisis period, we can examine the difference in value relevance of accounting figures between the financial crisis period and the non-financial crisis period. Therefore this paper investigate whether the difference of relative portion in accounting figures will be affected by the economic condition. Our hypothesis are as follow; First, we expect that the value relevance of net book value will be higher than the net income during the financial crisis period relative to non-financial crisis period. The risk of bankruptcy will be higher during crisis rather than non-financial crisis period. Therefore investors focus on the net book value in financial crisis period, whereas in non-financial crisis period investor place the relative importance on the net income. Because the book value indicates the liquidation value of firm, investor focus on the book value during the crisis. Second, the differences in value relevance of accounting figures during financial crisis will be affected on the probability of bankruptcy. We use Altman et al.(1995)'s measure as the proxy of the probability of bankruptcy. Third, we posit that the value relevance of accounting figures will differ between before and after the financial crisis. Because the regulations and rules related to accounting information were changed due to financial crisis. Therefore we expect that the quality of accounting information increased after financial crisis. If that is correct, the relative value relevance of net income will be increased. But we cannot expect whether the increased quality of financial information positively relate with the increasing value relevance of net income or book value. Finally, the differences in value relevance between before and after the financial crisis will be affected on the probability of bankruptcy. And also, we reexamine the hypothesis including the tobin's Q. We find that the value relevance net book value (net income) increased (decreased) during the financial crisis period. This is more pronounced in the case of the firms that have higher probability of bankruptcy. In addition, value relevance of net book value is higher in firms with tobin's Q greater than 1. When the sample is further divided into before, during, and after the crisis, value relevance of net book value both before and during the financial crisis is higher relative to that after the financial crisis. Net income after the crisis, however, did not simply recover relevance it lost during the crisis, but has greater relevance relative to that before the crisis.