전부원가계산과 경영자의 재고관리 유인에 대한 시장평가

This paper investigates and tests a hypothesis concerning the proposition that manager’s opportunistic incentive is dominant in managerial discretion on inventory under full costing. Overproduction is a costly means of earnings management that incurs real operating activity burden and the decrease of firm value, which conflicts with the stockholders’ benefits. In this study, Abnormal inventory is a proxy for Managerial discretion on inventory, which is measured by an abnormal inventory model based on the linear relation of inventory and sales. Whether abnormal inventory increased from managerial discretion is opportunistic can be inferred by market assessment. The analysis for market assessment is based on the framework of the earning-price response model by Choi(1994) and controls variables of opportunity cost of abnormal inventory investment as well as the effect of size, industry and years. In the results, the market response coefficient on abnormal inventory is significantly negative, which is consistent with the hypothesis. The results imply that with the managerial discretion on inventory through overproduction, opportunistic incentive is dominant. This study provides empirical evidence about the controversial accounting issue of the defect of full costing from the middle of twentieth century until now.