본문 바로가기
KERD
논문KCI 등재

Cost Stickiness and Financial Analysts’ Information Environment : An Evidence from the Korean Market

최준혁|양동훈|김새로나
한국국제회계학회 (Korea International Accounting Association)|2021.10|국제회계연구 (Korea International Accounting Review)|제99호|pp. 171-202|DOI 10.21073/kiar.2021..99.008

2

조회

0

다운로드

1

인용

0

참고문헌

키워드

Public information공적정보Private information이익예측정확성원가행태사적정보원가하방경직성Cost stickinessAnalyst information environmentEarnings forecasts accuracy재무분석가 정보환경

초록

[Purpose] This study investigates whether the decline in the forecast accuracy and coverage for sticky firms (Weiss 2010) is due to the analysts’ information environment such as the decrease in reliance on private information. [Methodology] We used Weiss (2010)’s firm－level cost stickiness and Barron et al. (1998)’s precision of analysts’ public and private information, and the consensus, the degree to which analysts rely on public or private information. [Findings] First, we found that sticky cost behavior decreases both public and private information. Besides, sticky cost behavior decreases private information to a more significant extent than public information. Second, we found that forecast errors are reduced for the sticky firms when analysts increase their reliance on private information. Finally, sticky cost behavior increases analysts’ reliance on private information in the next period. [Implications] We believe that our study contributes to the literature because not many studies have investigated the influence of asymmetric cost structure on the analysts’ information set, private and public information. We believe that this study contributes to the understanding of cost stickiness in that we showed the sticky cost’s impact on the information intermediation activities of individual analysts, especially we confirmed that analysts’ private information plays an important role in improving the accuracy of analysts’ earnings forecast for firms with cost stickiness.

Abstract

[Purpose] This study investigates whether the decline in the forecast accuracy and coverage for sticky firms (Weiss 2010) is due to the analysts’ information environment such as the decrease in reliance on private information. [Methodology] We used Weiss (2010)’s firm－level cost stickiness and Barron et al. (1998)’s precision of analysts’ public and private information, and the consensus, the degree to which analysts rely on public or private information. [Findings] First, we found that sticky cost behavior decreases both public and private information. Besides, sticky cost behavior decreases private information to a more significant extent than public information. Second, we found that forecast errors are reduced for the sticky firms when analysts increase their reliance on private information. Finally, sticky cost behavior increases analysts’ reliance on private information in the next period. [Implications] We believe that our study contributes to the literature because not many studies have investigated the influence of asymmetric cost structure on the analysts’ information set, private and public information. We believe that this study contributes to the understanding of cost stickiness in that we showed the sticky cost’s impact on the information intermediation activities of individual analysts, especially we confirmed that analysts’ private information plays an important role in improving the accuracy of analysts’ earnings forecast for firms with cost stickiness.

참고문헌 (65)

  1. Andrew W. Alford, "A Simultaneous Equations Analysis of Forecast Accuracy, Analyst Following, and Trading Volume", Journal of Accounting, Auditing & Finance, 14(3), pp.219~240 (1999), SAGE Publications[DOI]
  2. Ali, Ashiq, "Analysts’ Use of Information about Permanent and Transitory Earnings Components in Forecasting Annual EPS", The Accounting Review, 67(1), pp.183~198 (1992)
  3. Mark C. Anderson, "Are Selling, General, and Administrative Costs "Sticky"?", Journal of Accounting Research, 41(1), pp.47~63 (2003), Wiley[DOI]
  4. Understanding Cost Management:What Can We Learn from the Evidence on ‘Sticky Costs’?, "Anderson, Shannon W", ~ (2007)
  5. Rowland Kwame Atiase, "Predisclosure Information, Firm Capitalization, and Security Price Behavior Around Earnings Announcements", Journal of Accounting Research, 23(1), pp.21~ (1985), JSTOR[DOI]
  6. Ramji Balakrishnan, "Does Capacity Utilization Affect the “Stickiness” of Cost?", Journal of Accounting, Auditing & Finance, 19(3), pp.283~300 (2004), SAGE Publications[DOI]
  7. Ramji Balakrishnan, "Cost Structure and Sticky Costs", Journal of Management Accounting Research, 26(2), pp.91~116 (2014), American Accounting Association[DOI]
  8. Rajiv D. Banker, "Asymmetric Cost Behavior", Journal of Management Accounting Research, 26(2), pp.43~79 (2014), American Accounting Association[DOI]
  9. Cost behavior models analysts and investors use, "Banker, Rajiv D.", ~ (2017)
  10. Rajiv D. Banker, "Predicting Earnings Using a Model Based on Cost Variability and Cost Stickiness", The Accounting Review, 81(2), pp.285~307 (2006), American Accounting Association[DOI]
  11. The source of persistence in analysts’relative forecast accuracy, "Banker, Rajiv D.", ~ (2016)
  12. Barron, Orie E., "Using Analysts’ Forecasts to Measure Properties of Analysts’ Information Environment", The Accounting Review, 73(4), pp.421~433 (1998)
  13. Orie E. Barron, "Changes in Analysts' Information around Earnings Announcements", The Accounting Review, 77(4), pp.821~846 (2002), American Accounting Association[DOI]
  14. Orie E. Barron, "Evidence That Investors Trade on Private Event-Period Information around Earnings Announcements", The Accounting Review, 80(2), pp.403~421 (2005), American Accounting Association[DOI]
  15. Orie E. Barron, "Further Evidence on the Relation between Analysts' Forecast Dispersion and Stock Returns", Contemporary Accounting Research, 26(2), pp.329~357 (2009), Wiley[DOI]
  16. Orie E. Barron, "Earnings Surprises that Motivate Analysts to Reduce Average Forecast Error", The Accounting Review, 83(2), pp.303~325 (2008), American Accounting Association[DOI]
  17. Eli Bartov, "The rewards to meeting or beating earnings expectations", Journal of Accounting and Economics, 33(2), pp.173~204 (2002), Elsevier BV[DOI]
  18. Sudipta Basu, "The conservatism principle and the asymmetric timeliness of earnings1", Journal of Accounting and Economics, 24(1), pp.3~37 (1997), Elsevier BV[DOI]
  19. Ravi Bhushan, "Firm characteristics and analyst following", Journal of Accounting and Economics, 11(2-3), pp.255~274 (1989), Elsevier BV[DOI]
  20. Christine A. Botosan, "The Role of Information Precision in Determining the Cost of Equity Capital", Review of Accounting Studies, 9(2, pp.3) (2004), 233~259[DOI]
  21. Robert M. Bowen, "Do Conference Calls Affect Analysts' Forecasts?", The Accounting Review, 77(2), pp.285~316 (2002), American Accounting Association[DOI]
  22. Lawrence D. Brown, "An Information Interpretation of Financial Analyst Superiority in Forecasting Earnings", Journal of Accounting Research, 25(1), pp.49~ (1987), JSTOR[DOI]
  23. Lawrence D. Brown, "A Temporal Analysis of Earnings Surprises: Profits versus Losses", Journal of Accounting Research, 39(2), pp.221~241 (2001), Wiley[DOI]
  24. Martin Bugeja, "Cost Stickiness in Australia: Characteristics and Determinants", Australian Accounting Review, 25(3), pp.248~261 (2015), Wiley[DOI]
  25. Byard, Donal A., "Cross－sectional and Time－series Patterns in Pre－announcement Information Inferred from Analysts’ Forecasts", Ph.D, pp.1998
  26. Donal Byard, "Corporate Disclosure Quality and Properties of Analysts' Information Environment", Journal of Accounting, Auditing & Finance, 18(3), pp.355~378 (2003), SAGE Publications[DOI]
  27. DONAL BYARD, "The Effect of Mandatory IFRS Adoption on Financial Analysts’ Information Environment", Journal of Accounting Research, 49(1), pp.69~96 (2011), Wiley[DOI]
  28. Kenneth Calleja, "A note on cost stickiness: Some international comparisons", Management Accounting Research, 17(2), pp.127~140 (2006), Elsevier BV[DOI]
  29. SHUPING CHEN, "Favorable versus Unfavorable Recommendations: The Impact on Analyst Access to Management-Provided Information", Journal of Accounting Research, 44(4), pp.657~689 (2006), Wiley[DOI]
  30. Mustafa Ciftci, "Stickiness in Costs and Voluntary Disclosures: Evidence from Management Earnings Forecasts", Journal of Management Accounting Research, 30(3), pp.211~234 (2017), American Accounting Association[DOI]
  31. Michael B. Clement, "Analyst forecast accuracy: Do ability, resources, and portfolio complexity matter?", Journal of Accounting and Economics, 27(3), pp.285~303 (1999), Elsevier BV[DOI]
  32. Daniel W. Collins, "Firm size and the information content of prices with respect to earnings", Journal of Accounting and Economics, 9(2), pp.111~138 (1987), Elsevier BV[DOI]
  33. Augustine Duru, "International Diversification and Analysts' Forecast Accuracy and Bias", The Accounting Review, 77(2), pp.415~433 (2002), American Accounting Association[DOI]
  34. David Easley, "Information and the Cost of Capital", The Journal of Finance, 59(4), pp.1553~1583 (2004), Wiley[DOI]
  35. Eddy, Albert, "An Examination of Hypotheses Concerning Earnings Forecast Errors", Quarterly Journal of Business & Economics, 31(2), pp.22~37 (1992)
  36. JENNIFER FRANCIS, "Voluntary Disclosure, Earnings Quality, and Cost of Capital", Journal of Accounting Research, 46(1), pp.53~99 (2008), Wiley[DOI]
  37. Robert N. Freeman, "A Nonlinear Model of Security Price Responses to Unexpected Earnings", Journal of Accounting Research, 30(2), pp.185~ (1992), JSTOR[DOI]
  38. Garrison, Ray. H., "Managerial Accounting" (2017), McGraw－Hill
  39. Zhaoyang Gu, "Analysts’ treatment of nonrecurring items in street earnings", Journal of Accounting and Economics, 38, pp.129~170 (2004), Elsevier BV[DOI]
  40. Harris, Milton, "Differences of Opinion Make a Horse Race", The Review of Financial Studies, 6(3), pp.473~506 (1993)
  41. Holthausen, Robert W., "The Effect of Informedness and Consensus on Price and Volume Behavior", The Accounting Review, 65(1), pp.191~208 (1990)
  42. Homburg, Carsten, "How Timely Are Earnings When Costs Are Sticky? Implications for the Link between Conditional Conservatism and Cost Stickiness", Paper presented at the AAA 2009 Management Accounting Section (2008)
  43. Raffi J. Indjejikian, "The Impact of Costly Information Interpretation on Firm Disclosure Decisions", Journal of Accounting Research, 29(2), pp.277~ (1991), JSTOR[DOI]
  44. BIN KE, "The Effect of Issuing Biased Earnings Forecasts on Analysts' Access to Management and Survival", Journal of Accounting Research, 44(5), pp.965~999 (2006), Wiley[DOI]
  45. Myungsun Kim, "An Additional Source of Financial Analysts' Earnings Forecast Errors: Imperfect Adjustments for Cost Behavior", Journal of Accounting, Auditing & Finance, 25(1), pp.27~51 (2010), SAGE Publications[DOI]
  46. Oliver Kim, "Trading Volume and Price Reactions to Public Announcements", Journal of Accounting Research, 29(2), pp.302~ (1991), JSTOR[DOI]
  47. Oliver Kim, "Market liquidity and volume around earnings announcements", Journal of Accounting and Economics, 17(1-2), pp.41~67 (1994), Elsevier BV[DOI]
  48. Oliver Kim, "Pre-announcement and event-period private information", Journal of Accounting and Economics, 24(3), pp.395~419 (1997), Elsevier BV[DOI]
  49. Lang, Mark H., "Corporate Disclosure Policy and Analyst Behavior", The Accounting Review, 71(4), pp.467~492 (1996)
  50. Maureen McNichols, "Self-Selection and Analyst Coverage", Journal of Accounting Research, 35, pp.167~ (1997), JSTOR[DOI]
  51. David P. Mest, "Revisions in analysts' earnings forecasts: evidence of non-linear adaptive expectations", Journal of Forecasting, 19(6), pp.467~484 (2000), Wiley[DOI]
  52. Michael B. Mikhail, "Does Forecast Accuracy Matter to Security Analysts?", The Accounting Review, 74(2), pp.185~200 (1999), American Accounting Association[DOI]
  53. Miller, Gregory S., "Earnings Performance and Discretionary Disclosure", Journal of Accounting Research, 40(1), pp.173~204 (2002)[DOI]
  54. Eric Noreen, "The Accuracy of Proportional Cost Models:Evidence from Hospital Service Departments", Review of Accounting Studies, 2(1), pp.89~114 (1997), Springer Science and Business Media LLC[DOI]
  55. Stephen H. Penman, "An Evaluation of Accounting Rate-of-return", Journal of Accounting, Auditing & Finance, 6(2), pp.233~255 (1991), SAGE Publications[DOI]
  56. SCOTT RICHARDSON, "The Walk-down to Beatable Analyst Forecasts: The Role of Equity Issuance and Insider Trading Incentives", Contemporary Accounting Research, 21(4), pp.885~924 (2004), Wiley[DOI]
  57. Douglas J. Skinner, "Earnings Surprises, Growth Expectations, and Stock Returns or Don’t Let an Earnings Torpedo Sink Your Portfolio", Review of Accounting Studies, 7(2, pp.3) (2002), 289~312[DOI]
  58. Scott E. Stickel, "The timing of and incentives for annual earnings forecasts near interim earnings announcements", Journal of Accounting and Economics, 11(2-3), pp.275~292 (1989), Elsevier BV[DOI]
  59. Scott E. Stickel, "Reputation and Performance Among Security Analysts", The Journal of Finance, 47(5), pp.1811~ (1992), JSTOR[DOI]
  60. EUGENE SOLTES, "Private Interaction Between Firm Management and Sell-Side Analysts", Journal of Accounting Research, 52(1), pp.245~272 (2014), Wiley[DOI]
  61. Subramaniam, Chandra, "Advances in Management Accounting", pp.275~305 (2016), Emerald Group Publishing Limited
  62. Watts, Ross L., "Positive Accounting Theory" (1986), Prentice－Hall
  63. Gregory Waymire, "Earnings Volatility and Voluntary Management Forecast Disclosure", Journal of Accounting Research, 23(1), pp.268~ (1985), JSTOR[DOI]
  64. Dan Weiss, "Extracting Forward-Looking Information from Security Prices: A New Approach", The Accounting Review, 83(4), pp.1101~1124 (2008), American Accounting Association[DOI]
  65. Dan Weiss, "Cost Behavior and Analysts’ Earnings Forecasts", The Accounting Review, 85(4), pp.1441~1471 (2010), American Accounting Association[DOI]

관련 논문AI추천

Cost Stickiness and Future Earnings Response Coefficient김진배, 이민영한국국제회계학회 · 국제회계연구2021 · 제97호Cost Stickiness and Investment Efficiency오현민한국유통과학회 · 산경연구논집2022 · 제13권 제1호Analysts’ Forecast Consistency and Investor Responsiveness to Earnings Information김영겸, 나종길, 신희정경영연구소 · 신산업경영저널2019 · 제37권 제2호Cost Stickiness, Firm Value, and the Effect of Managerial Ability김진배, 전성민한국국제회계학회 · 국제회계연구2021 · 제100호The Effect of Cost Stickiness on Future Stock Price Crash Risk: Focused on the Role of Information Opacity나종길, 신희정경영연구소 · 신산업경영저널2022 · 제40권 제1호하방경직적인 원가행태의 가치 관련성에 대한 이익조정의 영향김문현한국기업경영학회 · 기업경영연구2019 · 제26권 제6호

이 간행물의 다른 논문 (11건)

경쟁 위협과 자기자본비용최가영, 임승연pp. 1-25최대주주 변경유형이 신용평점 및 주식수익률에 미치는 영향정남철pp. 27-48은행의 최고경영자 교체와 매도가능금융자산의 선택적 처분에 관한 연구김문태, 이문영pp. 49-69The Impacts of Mandated Audit Communication on Audit Hour, Audit Fee and Firm’s Earnings Management심재연, 유승원, 유용근pp. 71-106산업전문감사인과 이익의 질 －손익구조변경공시를 한 기업의 BTD를 중심으로－이효진pp. 107-126
원문 보기