사외이사의 이사직 겸임이 이익조정에 미치는 영향

In this paper, I analyze the effect of the multiple directorship of outside directors on earnings management. In past studies, there has been largely divided into Reputation Hypothesis and Busyness Hypothesis. However, there is no consensus on the two hypotheses. In this context, this study regressed the relationship between the absolute value of the discretionary accruals measured by the modified Jones model and the multiple directorships of the outside directors on the KOSPI listed companies. The results of the analysis show that firms with outside directors who have additional position of director have a higher absolute value of discretionary accruals than those without directors. The reason for the difference in the absolute value of discretionary accruals according to whether or not the multiple directorships is that the multiple directors can not use enough time to perform the outside directors’ monitoring, and supervision. This study is meaningful in that it is the first study in Korea that investigated the relationship between the role of outside director’s multiple directorships and the earnings management. Based on the results of this study, it would be necessary to institutionalize the selection of outside directors.