종속기업에 대한 요약재무정보 주석 공시와 연결 및 별도재무제표 가치관련성의 차이

The purpose of this study is to provide empirical evidence of usefulness of footnote disclosures of financial information on subsidiaries in consolidated financial statements in Korea. After adopting IFRS in 2011, Korean companies are required to disclose both consolidated and separate financial statements, including summary of financial information of subsidiary companies in footnote. However, there is little empirical evidence of whether footnote disclosure has information content. This study fills this gap by examining whether information content of consolidated and separate vary with footnote information. Using Korean public firms between 2012 and 2016, this study regresses stock price or annual stock returns on earnings and book value from consolidated and separate financial statement. Empirical results show that both consolidated and separate financial statement are significantly associated with stock price and returns. However, when the amounts of assets (or liabilities, equity, sales, etc.) reported in consolidated and separate financial statements are significantly different from the amount of sum of assets of subsidiaries reported in footnote, we find reduced value relevance of financial information. These results imply that investors incorporate subsidiary information from footnote into stock price. Our results contributes to literatures that separate and consolidated financial statement has differential information content.