이익의 하향조정과 감사인의 역할: 최고경영자 교체 표본을 중심으로

Existing studies have documents that the big-audit firms have the high audit quality and the firms that are audited from the big-audit firms have provided the more reliable accounting information. In the circumstances of the income-increasing earnings management, the evidence that the big audit firm has decreased the discretionary accrual restricting the income-increasing earnings management is consistent with the high audit quality provided by the big-audit firms. This study investigated the role of high-quality auditors in restricting the income-decreasing earnings management using the samples of CEO turnover during the period of 2001 - 2005. It is useful to adopt the sample of CEO turnover that provide the circumstances of income-decreasing earnings management in the year of CEO transition. The empirical results support that the big-audit firms have not restricted the income-decreasing earnings management implying that the big-audit firms are likely to provide the low-audit quality and may not improve the reliability of the accounting information. It is because the big-audit firm is more likely to bear the less law-suit risk in the circumstances of the income-decreasing earnings management, compared to the circumstances of the income-increasing earnings management.