K－IFRS 의무적용이 건설업의 재무상태와 영업성과에 미친 영향

Abstract

The Adoption of K－IFRS was expected to have the greatest impact on the construction industry, because of industry－specific characteristics. Accordingly, the purpose of this study is to examine how the adoption of K－IFRS affected financial position and operating performance of firms in the construction industry. Empirical results are as follows. First, while the adoption of K－IFRS had no effect on cash flow of operating(CFO), it had a significant negative effect on net income(ROA) and significant positive effect on the volatility of net income(|ROA|), respectively. This result implicates that new accounting standards(K－IFRS) could cause ROA(|ROA|) to decrease(increase), in spite of no change in CFO. Second, the adoption of K－IFRS did not have an effect on total liability－to－asset ratio(LEV), but it had a significant effect on provisions(PRO, SPRO). This shows that construction firms listed in Korean stock market are likely to recognize a variety of provisions caused by the adoption of K－IFRS, even though total liability would not change.