보수주의 회계이익과 발생액의 질

This study investigates a relationship between conservative accounting and accruals quality. In addition, given that the relationship between these two could cross－sectionally varies, it examines whether foreign shareholders and the audit committee affect it. To do so, this study employs Basu(1997) model to measure the degree of conservatism and McNichols(2002) model to capture accrual quality. The sample period spans from the year of 2005 to 2016 and the number of the final observation is 6,379 firm－years that consist of listed firms in Korea securities maket during the same periods. The main results are as follows. First, it finds a positive relation between accounting conservatism and accrual quality. This indicates that conservative accounting would reduce information asymmetry, thereby improving accrual quality. Second, the positive relation between those two is more pronounced for firms with higher foreign shareholders. Third, the positive relation is also incrementally increased for firms that have the audit committee. These results suggest that foreign shareholders and the audit committee play a significant role as a watchdog for monitoring management, especially preventing management from the choice of accounting for their private interests.