내부회계관리제도 검토의견이 1/4분기 재무제표의 신뢰성에 미치는 영향

A series of accounting scandals in U.S. led to enactment of the Sarbanes-Qxley Act(SOX) in 2002 to restore public confidence in the quality of audited financial statements. This SOX affected Kore's accounting legislation in 2004. According to the new legislation auditor evaluated manager's assesment of internal accounting control system and submit reports based on their findings. The aim of this study is to provide an answer to whether there is subsequent information discount in the capital market by analyzing the changes of the reliability of accounting information after the report of the prior internal control system. This study investigates the association between market reactions on the prior internal control system and 1st quarterly earnings. This emprical analyses use 3,276 firm-quater observations in the 2007-2009 period. It was shown that even if a company reported a profit for the first quarter, the market showed negative reactions when the review opinion last year was qualified. The conclusion above could be interpreted that market participants decide the confidence level using the review opinion for internal control over financial report when there is no auditing by external auditors. Contributions of this study which is also differences with preceding studies are as follows. It is the first study discovering that the degree of trust in accounting information by market participants were different based on review opinions of prior years. On the other hand, this study has the following limitations. This study could not control some factors which might affect market reactions such as bond grades and outcome of lawsuits.