내부회계관리자의 경력과 가치관련성

The Act on External Audit of Stock Companies in 2018 requires firms to dis clos e career information of accountants and es tablis h the qualifications and procedures for appointment and dis mis s al of the internal control manager who is generally res pons ible for the operation of the internal control s ys tem. Firms can enhance the responsibility of accounting managers to prepare financial statements through new disclosures of career information. It is also expected that firms appoint executives with sufficient working experience and accounting expertise as internal control managers to achieve the purpose of the internal control system of preparing and disclosing reliable external financial reporting. This study analyzes the relation between the career of internal control manager and the value relevance of accounting information. Specifically, we investigate whether the longer the career of internal control manager, the greater the value relevance of accounting information. We use 2,068 firm-year observations from 2018 to 2020 for firms listed on the KOSPI. As a result, this study finds that the longer the working career and accounting career of internal control manager, the greater the pos itive effect of firm value through net as s ets and net profits . The res ults s how that inves tors can evaluate the human resource capabilities of firms using the newly disclosed career information. This implies that internal control manager’s long work experience and accounting expertise are positively reflected in firm value by giving higher credibility to the accounting information. Additional analyses s how s imilar res ults in the cas e of accounting officer and accounting s taff. This study is meaningful in the first empirical analysis of the relation between the career of internal control manager and the value relevance of accounting information using the disclosure of career information following the enforcement of the Act on External Audit of Stock Companies in 2018. Inves tors can evaluate the capabilities of internal control managers and reflect them in their inves tment decisions. The results of this study suggest that firms need to reorganize related organizations and actively manage the human resource capabilities in preparation for reliable accounting information. Firms’ efforts to effectively design and operate the internal control system can increase the value relevance of accounting information.