실제영업활동을 통한 이익조정이 신용평가에 미치는 영향

Abstract

High credit rating of a business in the modem society can not only help financing but also save financing cost. Higher credit rating can be an effective tool to enhance credibility of a company in the economic and social environment in which recognition of credit assessment is improved. In this context, it is expected that companies may have an incentive to earnings management as high as possible to get higher credit ratings. In relation to this, this study expected that manager’s incentive to earnings management would be stronger as applicability of credit ratings was getting expanded in credit-based business environment, and verified relation between earnings management through real activities manipulation and credit ratings. The findings demonstrated that abnormal costs of manufacturing, out of earnings management measures through real activities manipulation, had positive(+) relation with credit ratings of companies as expected. Abnormal cash flows from operation and abnormal discretionary costs, which are other earnings management measures through real activities manipulation, had different regression coefficients from expected credit ratings or showed insignificant coefficients. These findings suggest that abnormal costs of manufacturing may enhance credit ratings and incentive of a company to earnings management may set in or be expanded. As credit ratings are used as the key information in credit-based economic activities, we need to create the environment to provide more reliable credit assessment information by continuously monitoring validity of credit assessment methods and results.