과잉투자가 회계 보수성에 미치는 영향

[Purpose]This study investigates the effect of the prior overinvestment on the next year’s accounting conservatism. The outside investor, the demand side of accounting conservatism, will require higher conservatism in order to reduce the risk associated with manager’s overinvestment. Contrarily, the manager, the supply side of accounting conservatism, will select lower conservatism in oder to report higher income and obtain legitimacy with his investment decisions. [Methodology]The test sample consists of 9,967 firm－year data, selected from the KOSPI and KOSDAQ listed companies of the fiscal year during 2011－2017. To gauge conservatism I used the Penman and Zhang(2002) and Givoly and Hayn(2000) measures. And overinvestment is calculated by Tobin’s Q model, and McNichols and Stubben(2008) model. [Findings]The results of empirical tests report that the prior overinvestment has a positive relationship with the accounting conservatism. This means outer investor’s demand for higher conservatism affects the accounting conservatism. [Implications]The results of this study suggest that the level of conservatism that a firm adopts is systematically related to the overinvestment. And this study contributes additional evidence to the literature that managers adjust the level of conservatism in many different contexts. Also, the result of this study supplies the useful information to the investors and researchers who use financial report with enhancing the understanding of accounting conservatism.