전기오류수정손익이 발생액의 질에 미치는 영향

This paper analyzes the prior period error correction impact on the quality of accounting earnings. When there are errors disclosed in financial information, reliability, one of the important qualitative characteristic of financial information can be damaged and earnings quality would be recognized as poor. Non-financial, publicly traded corporation of Dec. from 2002 to 2010, final sample size(firm-year) is 7,430. Followings are findings of this study. The study finds that reported prior period error corrections and accruals quality show the negative correlation. This implies that firms who disclosed corrections of the prior period errors usually have poor quality of financial reporting than those of firms without prior period errors. In addition, the larger the amount of loss error, the study observes that accrual quality of financial information is low. Finally, the study finds that quality of financial information is significantly poor during pre period of disclosing errors while it is less significant after they disclose prior period errors. Consequently, our empirical evidence on the relation between prior period error corrections and earnings quality makes it possible to interpret that several accounting regulations to disclose material prior period error corrections can be effective in raising transparency of finanacial information.