이자와 배당의 수취 및 지급을 그 경제적 실질에 따라 분류할 유인과 활동별 현금흐름의 정보효과에 미치는 영향

International Financial Reporting Standards (IFRS) grant managers flexibility in classifying interest received, dividend received, and interest paid in the cash flow statement. Thus, this study examines determinants and consequences of classifying interest and dividend received as investing cash flows and interest paid as financing cash flows. Based on Korean firms that adopted IFRS in 2011, we find that firms tend to classify interest and dividend received as investing cash flows and interest paid as financing cash flows when the sum of interest paid and dividend paid is greater than the sum of interest received and dividend received. Also, the results reveal that firms classify interest and dividend received as investing activities and interest paid as financing activities when investing cash flows under K-GAAP are lower than the industry mean and when there exist analysts forecasting operating cash flows of the firm. Furthermore, we find that the value-relevance of operating cash flows increases as interest and dividend received are classified as investing cash flows and interest paid is classified as financing cash flows. This suggests that classifying interest and dividend in conformity with their economic substance improves the quality of information contents of operating cash flows.