About This Journal

korean management review - Vol. 54, No. 5
[Paper List] [ Prev] [Go to Volume List] [ Next]

[ Article ]
korean management review - Vol. 54, No. 5, pp. 1375-1401
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 31 Oct 2025
Received 07 Apr 2025 Revised 14 Jul 2025 Accepted 07 Sep 2025
DOI: https://doi.org/10.17287/kmr.2025.54.5.1375

Audit Quality of Auditors Auditing Embezzling Companies: Focusing on the Self-Contagion Effect
Ha-yeon Park ; Seonju Yoon
(First Author) Assistant Professor, Department of Business Administration, Catholic Kwandong University (hyp21@cku.ac.kr)
(Corresponding Author) Visiting Professor, Department of Business Administration, Inha University (helloseonju@gmail.com)

횡령·배임 기업을 감사한 감사인의 감사품질: 감사인의 전염(self-contagion) 효과를 중심으로
박하연 ; 윤선주
(주저자) 가톨릭관동대학교 경영학과 조교수
(교신저자) 인하대학교 경영학과 초빙교수

Copyright 2025 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 embezzlement cases in Korean-listed firms and examines the auditor’s role in the quality of disclosed accounting information. Embezzlement increases the risk of financial misstatements, harming capital market participants. While the primary responsibility lies with the company, auditors may also contribute to the lack of transparency. This study analyzes the self-contagion effect—whether auditors who provide low-quality audits to embezzling firms also deliver similarly low-quality audits to other firms they serve concurrently, particularly within the same industry. The findings suggest that audit quality deteriorates across firms sharing the same auditor, especially when embezzlement is not properly detected, indicating consistent low audit performance. This highlights the auditor’s systemic influence on financial reporting quality. The study contributes to the literature by focusing on asset embezzlement—a significant issue in Korea—and by shedding light on the underexplored concept of auditor self-contagion. Additionally, the analysis was refined by distinguishing between the embezzlement’s occurrence and disclosure dates, identifying whether the perpetrator was a manager or employee, and considering the scale of the embezzlement. These methodological enhancements strengthen the study's robustness and implications for audit accountability in emerging markets.

초록

본 연구는 기업의 횡령 및 배임은 재무정보의 불투명성을 야기하여 공시 위험을 높이지만, 이러한 문제에서 감사인 역시 일정 부분 책임이 있다고 판단함으로써 국내 기업에서 발생한 횡령·배임 사건을 중심으로 감사인의 역할에 주목하였다. 이에 동일 감사인이 횡령·배임 기업을 감사할 때 보인 낮은 감사품질이 동일 기간 내 다른 피감기업에도 동일하게 적용되는지를 감사인 전염(self-contagion) 효과를 통해 분석하였다. 분석 결과, 동일 산업 내 같은 감사인이 감사를 수행한 타 피감기업에서 횡령·배임 사건이 발생한 경우, 관심기업의 회계정보 불투명성이 높은 경향을 보였다. 이는 해당 감사인이 저품질의 감사서비스를 수임한 다른 기업에게도 일관되게 제공하고 있음을 시사한다. 본 연구는 자본시장에서 파급효과가 큰 자산 횡령 및 배임사건에 주목한 시의적절한 연구라고 할 수 있다. 또한 횡령·배임의 주체 및 금액, 그리고 사건의 발생일과 공시일을 구분하여 분석함으로써 연구의 정교성을 높였다는 점에서 의의를 가진다.

Keywords: Embezzlement, audit quality, self-contagion effect, information transfer effect, auditor
키워드: 자산 횡령·배임, 감사품질, 전염효과, 정보이전효과, 감사인
References
1. 김안규 (2008). “이익수준과 이익조정의 관계에 관한 연구,” 회계와 정책연구, 제13권 2호, pp.183-203.
Kim, A. (2008). “A Study of relation between level of earning and earnings management,” Review of Accounting and Policy Studies, 13(2), pp.183-203.
2. 박종일, 김수인, 신상이 (2019). “재무보고의 불투명성이 재무분석가의 이익예측오차에 미치는 영향,” 경영학연구, 제48권 2호, pp.299-340.
Park, J., S. Kim, and Shin, S. (2019). “The Effect of Financial Reporting Opacity on Analyst’ Earnings Forecast Errors,” Korean Management review, 48(2), pp.299-340.
3. 박하연, 이아영, 전성빈 (2015). “경영자의 자산횡령과 이익조정,” 국제회계연구, 제64권, pp.97-126.
Park, H., A. Lee, and Chun, S. (2015). “CEO' asset embezzlement and earnings management,” Korea International Accounting Review, 64, pp.97-126.
4. 박하연, 이아영, 전성빈 (2017). “자산횡령과 경영자특성,” 경영학연구, 제46권 2호, pp.375-401.
Park, H., A. Lee, and Chun, S. (2017). “Asset Embezzlement and CEO Characteristics,” Korean Management Review, 46(2), pp.375-401.
5. 손호철, 박성규 (2016). “최대주주의 잦은 변경과 횡령 및 배임이 이익조정에 미치는 영향,” 회계저널, 제25권 3호, pp.485-522.
Son, H. C. and Park, S. K. (2016). “The effect of frequent change of the largest shareholder and embezzlement and misappropriation on earnings management,” Korean Accounting Journal, 25(3), pp.485-522.
6. 윤선주, 손철, 고재민 (2016). “타 기업 회계이익 공시의 정보이전효과와 비교가능성의 영향,” 회계정보연구, 제3권 4호, pp.1-30.
Yoon, S. J., Z. Sun, and Goh, J. M. (2016). “Information transfer effect of other firms’ earnings announcement and financial statement comparability,” Korea Accounting Research, 3(4), pp.1-30.
7. 윤선주, 박하연 (2024). “횡령발생기업의 재무제표 비교가능성에 대한 연구,” 회계와 정책연구, 제29권 4호, pp.85-104.
Yoon, S. J. and Park, H. (2024). “A study on the comparability of financial statements focusing on embezzlement companies,” Review of Accounting and Policy Studies, 29(4), pp.85-104.
8. 윤순석, 박미경, 김효진 (2010). “횡령 및 배임 사건 공시기업의 시장반응과 이익조정,” 한국회계학회 학술대회, pp.1-19.
Yun, S. S., M. G. Kim, and Kim, H. J. (2010). “Market reaction and earnings management of firms disclosing embezzlement and breach of trust cases,” Korean Accounting Association Conference, pp.1-19.
9. 이성욱, 김유찬 (2011). “자산횡령과 재량적 발생액의 실증적 관계,” 대한경영학회지, 제24권 2호, pp.985-1007.
Yi, S. W. and Kim, Y. C. (2011). “An empirical relation between asset misappropriation and discretionary accruals,” Korea Journal of Business Administration, 24(2), pp.985-1007.
10. 이성욱, 김유찬, 정태섭 (2010). “내부회계관리제도의 취약점과 이사회 특성이 자산횡령에 미치는 효과,” 회계저널, 제19권 5호, pp.89-123.
Yi, S. W. and Kim, Y. C. (2010). “The effects of internal control weakness and board of directors’ characteristics on asset misappropriation,” Korean Accounting Journal, 19(5), pp.89-123.
11. 전규안, 박종일 (2017). “회계이익의 불투명성이 감사보수 및 감사시간에 미치는 영향,” 경영학연구, 제46권 5호, pp.1303-1341.
Jeon, K. A. and Park, J. (2017). “The Effect of Opaque Earnings on Audit Fees and Audit Hours,” Korean Management Review, 46(5), pp.1303-1341.
12. 최정호, 나종길 (2000). “부실기업 공시의 산업내 정보전이효과,” 한국증권학회지, 제27권 1호, pp.261-299.
Choi, J. H. and Nah, J. K. (2000). “Intra-industry information transfers associated with the disclosure financially distressed firms,” Korean Journal of Financial Studies, 27(1), pp.261-299.
13. Alves, P., P. F. Pope, and Young, S. (2009). “Cross-border information transfers: Evidence from profit warnings issued by European firms,” Accounting and Business Research, 39(5), pp.449-472.
14. Baginski, S. P. (1987). “Intraindustry information transfers associated with management forecasts of earnings,” Journal of Accounting Research, 25(2), pp.196-216.
15. Balsam, S., J. Krishnan, and Yang, J. S. (2003). “Auditor industry specialization and earnings quality,” Auditing: A Journal of Practice & Theory, 22(2), pp.71-97.
16. Burgstahler, D. and Dichev, I. (1997). “Earnings management to avoid earnings decreases and losses,” Journal of Accounting and Economics, 24(1), pp.99-126.
17. DeAngelo, L. (1981). “Auditor size and audit quality,” Journal of Accounting and Economics, 3(3), pp.183-199.
18. Dechow, P. M., Hutton, A. P., Kim, J. H., and Sloan, R. G. (2012). “Detecting earnings management: A new approach,” Journal of Accounting Research, 50(2), pp.275-334.
19. Dechow, P. M., Sloan, R., and Sweeney, A. (1996). “Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC,” Contemporary Accounting Research, 13(1), pp.1-36.
20. Firth, M. (1976). “The impact of earnings announcements on the share price behaviour of similar type firms,” The Economic Journal, 86(342), pp.296-306.
21. Francis, J. R., and Michas, P. N. (2013). “The contagion effect of low-quality audits,” The Accounting Review, 88(2), pp.521-552.
22. Gleason, C. A., Jenkins, N. T., and Johnson, W. B. (2008). “The contagion effects of accounting restatements. The Accounting Review, 83(1), pp.83-110.
23. Gul, F. A., Chen, C., and Tsui, J. (2003). “Discretionary accounting accruals, managers’ incentives, and audit fees,” Contemporary Accounting Research, 20(3), pp.441-464.
24. Han, J. C. Y., and Wild, J. J. (1990). “Unexpected earnings and intraindustry information transfers: Further evidence,” Journal of Accounting Research, 28(1), pp.211-219.
25. Hutton, A. P., Marcus, A. J., and Tehranian, H. (2009). “Opaque financial reports, R2, and crash risk,” Journal of Financial Economics, 94(1), pp.67-86.
26. Kim, Y. T., and Li, S. (2010). “Mandatory IFRS adoption and intra-industry information transfers,” Working Paper. Santa Clara University.
27. Kothari, S. P., Leone, A. J., and Wasley, C. E. (2005). “Performance matched discretionary accrual measures,” Journal of Accounting and Economics, 39(1), pp.163-197.
28. Lang, L. H. P., and Stulz, R. M. (1992). “Contagion and competitive intra-industry effects of bankruptcy announcements,” Journal of Financial Economics, 32(1), pp.45-60.
29. Li, L., Qi, B., and Zhang, J. (2017). “The effect of engagement auditors on financial statement comparability,” Working paper
30. Lim, H. I., Kang, S. K., and Kim, H. S. (2016). “Auditor quality, IFRS adoption, and stock price crash risk: Korean evidence,” Emerging Markets Finance & Trade, 52(9), pp.2100-2114.
31. Otchere, I., and Ross, M. (2002). “Do share buy back announcements convey firm-specific or industry-wide information? A test of the undervaluation hypothesis,” International Review of Financial Analysis, 11(4), pp.511-531.
32. Schipper, K. (1990). “Information transfers,” Accounting Horizon, 4(4), pp.97-107.
33. Wang, C. (2014). “Accounting standards harmonization and financial statement comparability: Evidence from transnational information transfer,” Journal of Accounting Research, 52(4), pp.955-992.

∙저자 박하연은 현재 가톨릭관동대학교 경영학과 회계담당 조교수로 재직 중이다. 서강대학교에서 경영학사/이학사 그리고 경영학석사 및 박사를 취득하였다. 박사 학위 취득 이후에는 서강대학교 경영학부 대우교수 및 서강대 경영연구소에서 선임연구원으로 일하였다. 주요연구분야는 회계투명성, 공시, 지배구조, 경영자특성 등이다.

∙저자 윤선주는 현재 인하대학교에서 경영학과 초빙교수로 재직중이다. 인하대학교에서 경영학학사, 석사 그리고 박사를 취득하였다. 주요 연구분야는 회계투명성, 주가급락, 비교가능성 등이다.

 
Mail : editor_kmr@daum.net
COPYRIGHT ⓒ 2011 Korean Academic Society Of Business Administration. All rights reserved