감사품질이 금융기관차입금비율과 이익조정의 관련성에 미치는 영향

This paper empirically analyzes the effects of audit quality on relation between debt from financial institutions and earnings management. Audit quality was measured using audit firm size, continuing audit, and audit time. And earnings management was measured using discretionary accruals(DA) by adjusted Jones model(Dechow et al. 1995). The sample consists of non-banking firms(1,078 firm-years) with December fiscal year listed in Korean Stock Exchange over 2001-2003. Empirical findings are summarized as follows; First, as it is shown in the table 5(model 1), the client of large audit firm was reduced positive(+) relation between debt from financial institutions and discretionary accruals as compared to the client of small audit firm. Second, as it is shown in the table 5(model 2), the continuing audit was reduced positive(+) relation between debt from financial institutions and discretionary accruals as compared to the initial audit. These results in this study provide indirect evidences that audit quality influences on positive(+) relation between debt from financial institutions and discretionary accruals and imply indirectly that there was a trade-off relationship between manager and auditor on earnings management. In the raising interest of earnings management and audit quality, the results of this paper can provide beneficial information to the academic and administrative work by verifying effect of audit quality on relation between debt from financial institutions and earnings management.