발생액이익조정을 이용한 이익감소회피 및 손실회피가 내재자본비용에 미치는 영향

This study investigates whether and how a firm's cost of equity capital is influenced by just meet and beat earnings benchmark by earnings management. In other words, the objective of this study is to test whether a firm's cost of capital increases with accrual earnings management even though they avoid earnings decrease and loss. Using yearly cross-sectional regressions of the cost of equity capital on our proxies for accrual earnings management, beta, market-to-book ratio and other innate risk factor over the 2003-2011,We find that the equity cost of capital is negatively associated with just meet and beat earnings benchmark that is companies avoid earnings decrease and loss after controlling for all other factors. But we find that the cost of equity capital is positively associated with accrual earnings management even though they avoid earnings decrease and loss. This result implies that the market think good signal and demand less premium for the avoid earnings decrease and loss companies. But if it is the result opportunistic earnings management, they demand more premium for poor accounting information quality. As a result, rational investors therefore demand a premium for bearing this accrual earnings management-related information risk, which in turn leads us to observe a positive relation between just meet and beat earnings benchmark by earnings management and the cost of equity capital.