콜옵션 전환사채 발행기업의 이익조정

As of August 29, 2013, the issue of privately-placed detachable bonds with warrants(BWs) was prohibited. Accordingly, a new type of callable convertible bond(CB) was established that granted call options to third parties. The issue of callable CBs has increased rapidly and the market has recognized callable CBs as a form of evolved privately-placed detachable BWs. However, financial authorities have stood on the sidelines. This study analyzes earnings management in order to examine the problems of callable convertible bonds. We examine CBs issued between 2013 and 2017 and investigate whether the largest shareholders of firms issued callable CBs use earnings management in order to maximize profits. Firms can manage earnings either by discretionary accruals or by real earnings management. We find that firms issued callable CBs do not manage earnings compared with firms issued standard CBs from one year before the year of issuance. However, firms issued callable CBs use significantly less discretionary accruals and real earnings one year after issuance, compared with firms issued standard CBs. This is explained as an attempt to pursue larger gains by lowering conversion price because callable CB owners only buy CBs if call options are in the money.