공정가치 측정 및 공정가치 서열체계가 현금보유수준에 미치는 영향

[Purpose]This study examines the association between fair value inputs and corporate cash holdings. A trade－off often exists between relevance and reliability of accounting numbers. Prior research suggests that fair value accounting increases the relevance and decreases the reliability. The reduced reliability may lead to more agency conflicts. We predict a positive relation between the use of fair value inputs and the level of corporate cash holdings because prior research links more agency conflicts to a higher level of cash. [Methodology]Using 2,273 firm－year observations from 2011 to 2017, we regress the level of cash holdings on fair value and the intensity of fair value inputs and control for other factors that may influence the level of cash holdings. [Findings]This study finds that increased use of fair value inputs is associated with a higher level of cash holdings, and the results are mainly driven by Level 2 and Level 3 fair value inputs. [Implications]This study suggests that fair value reduces the reliability of accounting information and induces agency conflicts and in such a situation, managers may increase the level of cash holdings as the means of their opportunistic behavior. So, we insist that accounting standard setters try to provide more detailed and concrete guidelines and provisions on fair value measurement.