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Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 50, No. 5, pp.1187-1215
ISSN: 1226-1874 (Print)
Print publication date 31 Oct 2021
Received 22 Dec 2020 Revised 26 Apr 2021 Accepted 11 May 2021
DOI: https://doi.org/10.17287/kmr.2021.50.5.1187

코스피기업과 코스닥기업의 분기이익조정에 대한 비교연구: 회계제도 변화를 중심으로

Moonchul Kim ; Youngsoon S. Cheon ; Jungyoup Lee
(First Author) School of Management, Kyung Hee University kimc@khu.ac.kr
(Corresponding Author) College of Business & Economics, Chung-Ang University yscheon@cau.ac.kr
(Co-Author) Department of Health and Medical Administration, Shingu College jylee@shingu.ac.kr
Comparison of Quarterly Earnings Management Between KOSPI and KOSDAQ Markets: Focusing on Institutional Reforms Related to Accounting Information


Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Prior research finds that firms in the KOSDAQ market tend to manage annual earnings more than their counterparts in the KOSPI market. However, there is little research that systematically investigates differences in quarterly earnings management between the two groups. Hence, this study examines whether there are differences in quarterly earnings management between KOSPI and KOSDAQ firms. We also examine whether accounting reforms adopted to improve the quality of financial statements are effective in restraining quarterly earnings management. The results reveal that the KOSDAQ firms manage quarterly earnings to the greater extent than the KOSPI firms. We also find that the IFRS adoption has positive effects on quarterly earnings management in both KOSPI and KOSDAQ markets, whereas the auditor review of interim financial statements has no effect on quarterly earnings management.

Keywords:

Accounting reforms, Accrual models, KOSDAQ-market firms, KOSPI-market firms, Quarterly earnings management

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∙ The author Moonchul Kim is a professor in the Department of Accounting and Taxation at Kyung Hee University. He earned a doctoral degree in Accounting from the University of Illinois at Urbana-Champaign. His research interests include value-relevance of accounting information, earnings management, insider trading and accounting, and audit quality.

∙ The author Youngsoon S. Cheon is a professor in the College of Business & Economics at Chung-Ang University. She earned a doctoral degree in Accounting from the University of Georgia. Her research interests include incentives for and effects of disclosures, corporate governance, and usefulness of accounting information.

∙ The author Jungyoup Lee is an assistant professor in the Department of Health and Medical Administration at Shingu College. He earned a doctoral degree in Accounting from Kyung Hee University. His research interests include insider trading, earnings management, and disclosures.