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korean management review - Vol. 51 , No. 2

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[ Article ]
korean management review - Vol. 51, No. 2, pp. 519-541
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 30 Apr 2022
Received 22 Nov 2021 Accepted 16 Dec 2021
DOI: https://doi.org/10.17287/kmr.2022.51.2.519
The Association between the Career of Accounting Manager and Discretionary Accruals
Namchul Jung
(First Author) School of Business Administration, Hongik University (jnc1208@hongik.ac.kr)
회계담당직원의 경력과 재량적발생액

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

This study investigates the relationship between the career of accounting manager and discretionary accruals using newly available disclosure data in 2018 and 2019.

Empirical results showed a positive association between the career of accounting manager and discretionary accruals. It is judged that the longer the career of the accounting manager, the more proficient to use earnings management using the accruals, and the closer between accounting managers and the executives. However, the positive association decreases when there is a CPA in the accounting department or when an accounting manager is registered with a related organization. This suggests that the existence of experts in the accounting department and the assignment of accountability to accounting staff have a positive effect on accounting quality.

This study has a contribution by empirically suggesting the relationship between the characteristics of firm’s accounting manager and accounting quality in an area where research is scarce.


Keywords: Accounting Manager, Accounting Career, Discretionary Accruals, Certfied Public Accountant, Enrollment to Related Organizations

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∙ The author Namchul Jung is currently an assistant professor in the School of Business Administration, Hongik University. He received his Ph. D. from Korea University Business School, and worked at Deloitte Anjin and BC Card Co., Ltd. His major research areas include audit quality, disclosure, and other fields of auditing and financial accounting.