연결실체 경영성과 구성요소의 정보유용성

Abstract

This study examines whether earnings, which can be either separate earnings or consolidated earnings, convey discerning information about the operational results of a consolidated entity along two dimensions. One is about the profitability of all the investments under the parent's significant influence. The question is hypothesized as whether the unexpected change in equity in earnings (EE, hereafter) is positively associated with abnormal returns. It is the same old quest for evincing the positive valuation role of EE, but its test is conducted in changes/returns format. The other is about the incremental cash generating ability of the consolidated entity over and above that of the parent. Earnings are comprised of two components - operating cash flows and accruals. Upon disclosure of separate income statement, capital market learns how to partition the earnings figure into these two components. The cash flow component herein, however, is that from the parent's operations alone and does not necessarily signify the cash generating ability of the consolidated entity as a whole. This study capitalizes on the idea that the consolidated income statement provides the market with an additional opportunity to fine-tune the cash flow component befitting the entity in its entirety. The hypothesis is whether inter-statement differences in operating cash flow component of earnings between the parent's separate statement and the entity's consolidated statement are positively associated with abnormal returns. Ordinary least squares method registers the results that (1) unexpected changes in EE are positively associated with abnormal earnings and that (2) inter-statement differences in operating cash flow component of earnings are positively associated with abnormal returns. Major tenets of these results are generally maintained when the initial sample of 1,404 firm/year data is used and when the returns are cumulated over the thirteen-month period of April through April.