K-IFRS의무 도입에 따른 해외진출기업과 실질이익조정

This study examines the effect of K-IFRS adoption(IFRS), overseas expansion(OVERSEAS) on RM(real earnings management by Roychowdhury, 2006). And examines overseas expansion effect on RM since K-IFRS(IFRS*OVERSEAS) adoption. Overseas expansion(OVERSEAS1) is measured by the ratio of export to total sales and overseas expansion(OVERSEAS2) is measured by the relative ratio of overseas assets to total assets. RM is composed of abnormal cash flow from operation(RM1), abnormal production cost(RM2), and abnormal discretionary expenses(RM3) and total of RM(RM4). The sample consists of non-banking firm(firm/year 2,051) listed in Korean Stock Exchange over 2007-2013, According to the research, this study can draw the following conclusions. First, IFRS variable has not significant sign but OVERSEAS1 and OVERSEAS2 variable has significant sign in correlation and regression analysis to RM. It is means K-IFRS adoption has not effect to RM but overseas expansion variable, which is a sort of environment or business characteristic, is important variable to RM. Second, IFRS×OVERSEAS1 variable has positive sign to RM2, RM3. It implies export firms managers upgrade RM1 and RM2 since K-IFRS adoption. IFRS×OVERSEAS2 variable has negative sign to RM1. It implies managers with overseas assets downgrade RM1 since K-IFRS adoption. OVERSEAS(overseas expansion) is significant sign to RM, but partially, not in all RM since K-IFRS adoption. Also sign direction is different according to type of OVERSEAS. It is means firms manager select part and direction to RM. This study contributes to the regulators and investors by providing the empirical evidence regarding effect of overseas expansion variable to RM since K-IFRS adoption.