K-IFRS 적용 전·후의 이익조정에 관한 연구

Abstract

With internationalization of the capital market and unification of financial markets, IFRS was introduced to increase transparency, comparability, and reliability of financial information. As accounting standards were changed, measurements in earnings management should not remain the same due to differences in recognition, measurement, and accounting method for accounting transaction. Accordingly, earnings management before and after full adoption of K-IFRS was analyzed. In this study, we use discretionary accruals and real activities(abnormal cash flow from operation, abnormal discretionary expense and abnormal production cost) to analyze methods of earnings management. AEM(accruals-based earnings management) shows significantly positive (+) value at 1% significance level with IFRSD(dummy variable representing before and after introduction of K-IFRS). It may be interpreted as an increase in earnings management by AEM upon introduction of K-IFRS. REM(real activities earnings management) shows significantly negative (-) value with IFRSD at 10% significance level. It may be interpreted that earnings management using REM was decreased upon introduction of IFRS. While there were previous studies about the effect of K-IFRS on earnings management in corporations that adopted K-IFRS at early stage, this study examines at first the effect of full introduction of K-IFRS on earnings management. Although overseas and domestic previous studies resulted in no or insignificant AEM and showed increase only in REM, this study shows a significant difference in earnings management in Korea after full introduction of K-IFRS. AEM is still an important method of earnings management and increase in AEM and decrease in REM suggests possibility of mutual substitution.