재무제표 비교가능성이 기업의 투자효율성에 미치는 영향

This study examines the association between financial statements comparability and corporate investment efficiency. In the neo-classical framework, a firm’s investment is affected solely by marginal Q ratio. However, recent previous studies suggest that financial accounting quality can improve investment efficiency by mitigating information asymmetry between investors and managers (Biddle and Hilary 2006; McNichols and Stubben 2008; Biddle et al. 2009). Specifically, high quality financial reporting can reduce cost of raising capital thereby diminish market mispricing and increase efficiency of investment. I expand prior literature by investigating the relation between financial statements comparability and investment efficiency. Although comparability is important factor introduced in Financial Accounting Standards Board (FASB) accounting concepts statement, due to limitation in its measurement there are few studies that examine financial statements comparability. Exceptionally, De Franco et al.(2011) developed a new measure of comparability. They find that their measure of comparability is higher when firms operate in the same industry and have similar market capitalization. They also find that comparability measure is positively related to analyst following and forecast accuracy. By using measures introduced in De Franco et al.(2011), I relate this measure to corporate investment decision. There are at least three reasons to believe that financial statements comparability is positively associated with investment efficiency. First, investors in firms with high comparability could monitor managerial decisions more effectively because their accounting numbers are comparable across the peers in the same industry and year (Bushman and Smith 2001; Biddle et al. 2009). Investors are able to monitor managers by comparing their financial statements to industry competitors. Thus, I expect managers’ opportunistic behavior such as over- or under-investment may decrease in firm with high comparable earnings. Second, it is future growth rate that influences investment (Tobin 1969; McNichols and Stubben 2008). Firms’ growth rate is expressed by revenue and earnings which are stated in financial statements. Thus, comparable financial statements are useful when managers evaluate the investment projects. Third, investment efficiency is related not only with outputs of investment but also with inputs of investment such as raised capital or cash. Since high quality accounting reports reduce cost of capital (Chang et al. 2009; Biddle et al. 2009; Kim et al. 2013), comparable financial information could reduce inputs of investment projects thereby increase efficiency. Overall, by these reasons, I expect positive relation between financial statements comparability and investment efficiency. The empirical results show that financial comparability is positively associated with corporate investment efficiency. In addition, the results are consistent when investment is divided into over- and under-investment. Specifically, higher financial comparability reduces both over- and under-investment. The results are robust in the use of several different proxies of financial comparability. Also, results of using McNichols and Stubben (2008) model or Biddle et al. (2009) model to calculate investment efficiency are qualitatively similar. Results are consistent in both Chaebol and non-Chaebol subsamples. Also, I find robust results even after using two-stage regression to control endogeneity problem. Finally, the results are not affected by accruals quality, corporate governance mechanisms such as audit quality or foreign ownership, and the adoption of K-IFRS. The research contributes to the literature in several ways. First, this study expands literature on financial comparability. Prior studies show that the accounting quality measured by accruals or audit quality affect firms’ investment, however, they remain silence to the concept of comparability. While empirical evidences are not well accumulated in this area, this study provides insight for future research by showing the relation between comparable financial information and corporate investment decision. Second, this study provides economic consequences of financial comparability by investigating investment decisions that help investors who monitor managerial behavior. Thus, the study contribute to financial statement providers as well as policy makers and market participants who evaluates financial statement across peer firms.