기업의 부도위험과 회계감사 의견이 기업의 접대비 지출에 미치는 영향

We study the effects of, a peculiar type of expenses, catering expenses, sometimes called entertainment costs, using firm level data for firms listed on and delisted from KOSPI during the period 1991 to 2007 with data from databases of KIS-Value. From the study, we find that (1) the catering expenses, measured as a ratio to sales, do have statistically significant relationship with the reputation of auditors, proxied by Big 4 auditing firms, which are the biggest in size and primarily associated with global auditing and consulting firms like Ernest Young, KPMG, PwC and Deloitte. The results are same for the interactive terms with their audit opinions, that (2) they increase with bad audit opinions, implying firms try hard to improve the results of audit using catering expenses, that (3) the predicted default risks increase the expenditure of the expense incurred while the facts that they actually defaults do the opposite, that (4) the expenses increase with new auditors, implying that firms cater their auditors for better audit opinions, and that (5) the interaction of bad audit opinions and predicted default risks or ex post defaults. The catering expenses in conclusion might be used in influencing accounting audit in Korea, when with new auditors, to improve possibly bad audit reports especially with higher default risks but not when they actually defaulted.