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korean management review - Vol. 47 , No. 6
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korean management review - Vol. 47, No. 6, pp. 1339-1365
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 31 Dec 2018
Received 06 Aug 2018 Accepted 03 Oct 2018
DOI: https://doi.org/10.17287/kmr.2018.47.6.1339

The Effect of Income Smoothing on Financial Statement Comparability
Yong Shik Kim* ; Sang Hun Park**
*Associate Professor, Hansung University, First Author, Corresponding Author
**Ph.D., Hansung University, Co-Author

이익유연화가 재무제표 비교가능성에 미치는 영향
김용식* ; 박상훈**
*(주저자, 교신저자) 한성대학교 경영학부 부교수 (jacob@hansung.ac.kr)
**(공저자) 한성대학교 경영학부 박사 (pnicholas@hanmail.net)
Funding Information ▼
Abstract

This study investigates the effect of income smoothing on financial statement comparability. The proxy of financial statement comparability is calculated according to De Franco et al. (2011)’s method. The proxy of income smoothing is calculated according to Tucker and Zarowin (2006)’s method and modified Jones model(Dechow et al. 1995).

The results are as follows. First, we find that the comparability increases when the level of income smoothing is higher. Second, we find that the group that is likely to smooth income by using discretionary accruals is positively related to the comparability.

Additionally, we find that the comparability increases when the level of the interaction between earnings management and income smoothing is higher. Second, we use the change variables to control the effect of endogeneity of earnings management and income smoothing on financial statement comparability, and we find that the negative relationship between earnings management and the comparability and the positive relationship between income smoothing and the comparability, which makes our results robust.

The difference of the study compared to previous research is as follows. De Franco et al. (2011) make a new comparability measure in terms of a function connecting economic events and financial statements. They find that financial statement comparability is positively related to analyst following and forecast accuracy. Sohn(2016) investigates the relationship between earnings management and comparability, and finds that accrual-based earnings management decreases and real earnings management increases when accounting system comparability is high. We divide earnings management into opportunistic earnings management with high volatility and income smoothing with low volatility. We find that opportunistic earnings management with high volatility decreases financial statement comparability, but income smoothing with low volatility increases financial statement comparability.

The results of this study confirm that high volatile opportunistic earnings management and income smoothing have different effects on financial statement comparability and we extend Sohn(2016)’s study.

초록

본 연구는 이익유연화가 재무제표 비교가능성에 미치는 영향을 분석하였다. 비교가능성 측정치는 De Franco et al.(2011)의 측정방법에 따라 산출하여 사용하였다. 이익유연화는 Tucker and Zarowin(2006)의 측정방법과 수정 Jones 모형(Dechow et al. 1995)에 따라 재량적 발생액을 산출하여 사용하였다.

본 연구의 분석결과를 통해서 이익유연화 수준이 높을수록, 그리고 이익유연화할 가능성이 높은 그룹에서 재무제표 비교가능성이 증가한다는 것을 확인하였다. 경영자가 이익유연화를 통해서 미래 이익에 대한 더 많은 정보를 시장에 전달하여 경영자와 이해관계자간의 정보비대칭을 완화하고 투자자들이 부담하는 정보위험을 낮춤으로써 재무제표 비교가능성을 증가시킨다는 것을 의미한다.

추가분석에 따른 결과는 다음과 같다. 첫째, 이익유연화를 위한 이익조정은 비교가능성을 추가적으로 증가한다는 것을 확인하였다. 이익유연화 역시 이익조정의 한 형태이지만 이익변동성이 큰 기회주의적 이익조정과 다른 효과, 즉 재무제표 비교가능성을 향상시킨다는 것을 의미한다. 둘째, 변수들간의 관계에 대한 내생성을 통제하기 위해 변화변수를 사용하여 모형을 만들어 추가분석하였고, 이익유연화가 증가할수록 비교가능성이 증가하는 것을 확인함으로써 본 연구의 결과를 강건하게 한다.

본 연구를 통해서 이익유연화가 재무제표 비교가능성을 증가시킨다는 결과를 제시하였고, 이익변동성이 큰 기회주의적 이익조정과 이익유연화를 위한 이익조정이 재무제표 비교가능성에 서로 다른 영향을 미친다는 것을 확인함으로써 Sohn(2016)의 연구를 확장하였다.

Keywords: financial statement comparability, income smoothing, earnings management, discretionary accruals
키워드: 재무제표 비교가능성, 이익유연화, 이익조정, 재량적 발생액
Acknowledgments

본 논문은 2017년 대한민국 교육부와 한국연구재단의 지원(NRF-2017S1A5A2A01025030)을 받아 수행된 연구임

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• 저자 김용식은 현재 한성대학교 미래융합사회과학대학 경영학부 회계 전공 부교수로 재직 중이다. 서강대학교에서 경영학석사 및 박사를 취득하였다. 안진회계법인 및 서울시청에서 근무하였으며, Clark University에서 방문교수로 활동했다. 주요연구분야는 이익조정, 비교가능성, 기업지배구조, 경영자보상 등이다.

• 저자 박상훈은 현재 도시경영연구원에서 원가관리본부 본부장으로 재직 중이며, 물가변동으로 인한 계약금액 조정, 공공기관 중장기 경영계획 수립 및 경영 성과평가 용역 등의 연구용역 활동을 수행하고 있다. 한성대학교에서 경영학석사 및 박사를 취득하였다. 주요연구분야는 감사보수 결정 요인, 이익조정, 비교가능성 등이다.

 
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