본문 바로가기
KERD
논문KCI 등재

The Effect of Dividends on the Earnings Quality and Earnings Response Coefficient(ERC)

김금영|박삼복|유지연
한국상업경영학회 (The Korean Academy of Business Management)|2016.08|상업경영연구 (Korean Journal of Business & Management)|제30권 제4호|pp. 27-54|DOI 10.34274/krabe.2016.30.4.002

0

조회

0

다운로드

4

인용

0

참고문헌

키워드

배당dividend이익반응계수earnings qualityERC이익의질
주제분류경영학

초록

The aim of this study is to examine whether dividend paying status is associated with the quality of earnings and earnings response coefficients(ERC). Lintner(1956) reports that managers are reluctant to reduce dividends but increase dividends. However, if earnings are upward adjusted to pay dividends, firms is more likely to involve additional costs than other firm. As such, dividend paying firms are more likely to report earnings that are associated with reduced uncertainty over realization of expected cash flows and are less tainted by managerial opportunistic manipulation(MalKiel 2003; Glassman 2005). Therefore, firms that pay dividends should announce earnings closely related to actual performance of the firms and the reliability of earnings should be enhanced. As a result, investors get reliability to these firms. Therefore, firms that pay dividends are expected to have higher earnings response coefficients(ERC) compared to other firms. We measure earnings quality using Dechow et al.(1995) model as modified by the Jones’(1991) model and Dechow and Dichev’s(2002) model. The results of empirical analysis, firms that are paying dividends show higher earnings quality compared to firms that are not paying dividends. Next, differences in ERC between different dividend paying status are analyzed and according to the results, firms that are paying dividends have significantly higher ERC values compared to firms that are not paying dividends. In addition, information effects related to firms' earnings are compared and analyzed between firms that pay dividends for five years continuously and other firms. The results indicate that both the earnings quality and ERC of firms that pay dividends continuously are higher. Our study is considered meaningful in that it verified the information effects of dividend paying status unlike prior research that analyzed information effects according to changes in dividends. Therefore, this is considered to be capable of helping managers that determine firms' policies and investors that invest in firms with their investment decisions.

Abstract

The aim of this study is to examine whether dividend paying status is associated with the quality of earnings and earnings response coefficients(ERC). Lintner(1956) reports that managers are reluctant to reduce dividends but increase dividends. However, if earnings are upward adjusted to pay dividends, firms is more likely to involve additional costs than other firm. As such, dividend paying firms are more likely to report earnings that are associated with reduced uncertainty over realization of expected cash flows and are less tainted by managerial opportunistic manipulation(MalKiel 2003; Glassman 2005). Therefore, firms that pay dividends should announce earnings closely related to actual performance of the firms and the reliability of earnings should be enhanced. As a result, investors get reliability to these firms. Therefore, firms that pay dividends are expected to have higher earnings response coefficients(ERC) compared to other firms. We measure earnings quality using Dechow et al.(1995) model as modified by the Jones’(1991) model and Dechow and Dichev’s(2002) model. The results of empirical analysis, firms that are paying dividends show higher earnings quality compared to firms that are not paying dividends. Next, differences in ERC between different dividend paying status are analyzed and according to the results, firms that are paying dividends have significantly higher ERC values compared to firms that are not paying dividends. In addition, information effects related to firms' earnings are compared and analyzed between firms that pay dividends for five years continuously and other firms. The results indicate that both the earnings quality and ERC of firms that pay dividends continuously are higher. Our study is considered meaningful in that it verified the information effects of dividend paying status unlike prior research that analyzed information effects according to changes in dividends. Therefore, this is considered to be capable of helping managers that determine firms' policies and investors that invest in firms with their investment decisions.

참고문헌 (37)

  1. Aharony, J., "Regular Dividend Announcements and Future Unexpected Earnings : An Empirical Analysis", Financial Review, 29(1), pp.125~151 (1994)
  2. Aharony, J., "Quarterly Dividend and Earnings Announcements and Stockholders' Returns : An Empirical Analysis", Journal of Finance, 35(1), pp.1~12 (1980)
  3. Ball, R., "An Empirical Evaluation of Accounting Income Numbers", Journal of Accounting Research, 6(2), pp.159~178 (1968)
  4. Benartzi, S., "Do Changes in Dividends Signal the Future or the Past?", Journal of Finance, 52(3), pp.1007~1034 (1997)
  5. Bownn, R., "Accounting Discretion, Corporate Governance and Firm Performance", Contemporary Accounting Research, 25(2), pp.351~405 (2008)
  6. 최관, "현금전환가능성에 따른 발생액의 질과 시장이상현상", 회계학연구, 32(3), pp.1~26 (2007), 한국회계학회
  7. Dechow, P., "The Relation between Earnings and Cash Flows", Journal of Accounting Economics, 25(2), pp.133~168 (1998)
  8. Dechow, P., "The Quality of Accruals and Earnings : The Role of Accrual Estimation Errors", The Accounting Review, 77(1), pp.35~59 (2002)
  9. Dechow, P., "Detecting Earnings Managements", The Accounting Review, 70(2), pp.193~226 (1995)
  10. Easterbrook, F., "Two aAgency-cost Explanation of Dividends", The American Economic Review, 74(4), pp.650~659 (1984)
  11. Francis, J., "The Market Pricing of Accruals Quality", Journal of Accounting and Economics, 39(2), pp.295~327 (2005)
  12. When Numbers Don't Add Up, "Glassman, J.", Kiplinger's, 32~34 (2005)
  13. Grullon, G., "Dividend Changes do not Signal Changes in Future Profitability", The Journal of Business, 78(5), pp.1659~1683 (2005)
  14. Grullon, G., "Are Dividend Changes a Sign of Firm Maturity?", The Journal of Business, 75(3), pp.387~424 (2002)
  15. Healy, P., "Earnings Information Conveyed by Dividend Initiations and Omissions", Journal of Financial Economics, 21, pp.149~175 (1988)
  16. Holthausen, R., "The Effect of Sequential Information Releases on the Variance of Price Changes in an Intertemporal Multi-asset Markets", Journal of Accounting Research, 26(1), pp.82~106 (1988)
  17. 허광복, "이익의 질 측정치로서 영업이익과 영업현금흐름 차이의 유용성에 관한 연구", 상업교육연구, 24(2), pp.195~220 (2010), 한국상업교육학회
  18. Imhoff. E., "The Relation between Perceived Accounting Quality and Economic Characteristics of Firm", Journal of Accounting and Public Policy, 11(2), pp.97~118 (1992)
  19. Jensen, M., "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers", The American Economic Review, 76(2), pp.323~329 (1986)
  20. Jones, J., "Earnings Management during Import Relief Investigations", Journal of Accounting Research Economics, 29(2), pp.193~228 (1991)
  21. Kim, J., "A Study of the Impact of Signs of Earnings Level and Change and Earnings Management on the Earnings Response Coefficient", Korean Accounting Review, 25(4), pp.1~26 (2000)
  22. Kormendi, R., "Earnings Innovations, Earnings Persistence, and Stock Returns", The Journal of Business, 60(3), pp.323~345 (1987)
  23. Lee, H., "A Revisiting of the Information Effect of Dividends through the Persistence of Earnings", Korean Accounting Review, 30(1), pp.133~166 (2005)
  24. 임민경, "자산재평가와 이익반응계수", 상업교육연구, 26(4), pp.203~220 (2012), 한국상업교육학회
  25. Lev, B, "On the Usefulness of Earnings and Earnings Research : Lessons and Directions from Two Decades of Empirical Research", Journal of Accounting Research, 27, pp.153~192 (1989)
  26. Lintner, J, "Distribution of Incomes of Corporations among Dividends, Retained Earnings, and Taxes", American Economic Review, 46(2), pp.97~113 (1956)
  27. Malkiel, B, "The Dividend Bounce", Wall Street Journal (2003)
  28. Miller, M., "Dividend Policy, Hrowth and the Valuation of Shares", The Journal of Business, 34(4), pp.411~433 (1961)
  29. Myers, S, "Growth, Beta and Agency Costs as Determinants of Dividend Payout Ratio", Journal of Financial Research, 5(3), pp.249~259 (2000)
  30. Nissim, D., "Dividend changes and future profitability", Journal of Finance, 56(6), pp.2111~2133 (2001)
  31. Ofer, A., "Corporate Financial Policy, Information, and Market Expectations : An Empirical Investigation of Dividends", Journal of Finance, 42(4), pp.889~911 (1987)
  32. Rozeff, M, "Growth, Beta and Agency Costs as Determinants of Dividend Payout Ratios", Journal of Financial Research, 5(3), pp.249~259 (1982)
  33. 신용균, "기관투자자 지분율이 현금배당정책에 미치는 영향에 대한 연구", 상업교육연구, 28(5), pp.319~347 (2014), 한국상업교육학회
  34. Sloan, R, "Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future The Effect of Dividends on the Earnings Quality and Earnings Response Coefficient(ERC)53Earnings?", The Accounting Review, 71(3), pp.289~315 (1996)
  35. 손성규, "발생액의 질의 회계정보 유용성", 회계정보연구, 27(2), pp.273~304 (2009), 한국회계정보학회
  36. Watts, R, "The Information Content of Dividends", Journal of Business, 46(2), pp.191~211 (1973)
  37. Yen, H., "Are Dividends Associated with the Quality of Earnings?", Accounting Horizons, 24(1), pp.183~205 (2011)

이 간행물의 다른 논문 (7건)

상업계고등학교 졸업자의 직장만족도와 임금 변화에 관한 연구: 공업계고등학교 졸업자와의 비교서인석pp. 1-26사회적기업 특성이 경제적 성과와 사회적 성과에 미치는 영향에 관한 연구김선구, 김숙연pp. 55-73기업의 안전 관리가 안전성과 및 직무성과에 미치는 영향에 관한 연구김기용, 구자원pp. 75-103기업분할 공시와 이익조정행위한만용, 신용균pp. 105-130잉여현금흐름과 투자성향이 기업가치에 미치는 영향목남희pp. 131-153
원문 보기