투자－주가민감도에 대한 이익유연화의 효과

[Purpose] Previous studies have reported that mispricing problem leads to the abnormal investment tendency and the adverse selection of investment decisions. This study investigates that earnings smoothing can improve abnormal investment tendency by reducing investment－stock price sensitivity and mispricing risk. Further, this study also aims to investigates innate and discretionary earnings smoothing, which are classified according to the sources of earnings volatility, on investment－price sensitivity. [Methodology] This study analyzes the effects of earnings smoothing on investment－stock price sensitivity with a sample of 9,203 firm－year observations of non－financial listed firms. Earnings smoothing was measured by the ratio of cash flow volatility to earnings volatility. The proxy variable for Investment is asset growth rate and Tobin Q is used as the proxy variable for stock price. [Findings] First, earnings smoothing and investment－stock price sensitivity have a negative relationship. Second, both innate and discretionary earnings smoothing have a negative (－) relationship with investment－stock sensitivity. Third, compared with discretionary earnings smoothing, the effect of innate earnings smoothing on investment－stock price sensitivity is significantly greater. [Implications] This study provides empirical evidence on the causality that earnings smoothing contributes to the improvement of investment efficiency by reducing mispricing risk and investment－stock price sensitivity. In addition, this study analyzes the effects of earings smoothing on resource allocation, but also examines the effects of innate and discretionary earnings smoothing according to the earnings fluctuation.