빅배스 회계처리가 기업의 정보환경에 미치는 영향

[Purpose]This paper examines the change in information environment of firms following large, non－recurring charges(hereafter, big－bath). Prior literatures suggest that big－bath improves information environment while others suggest that big－bath degrades it. [Methodology]The samples are 501 observations taking big－bath as well as 501 observations not taking big－bath which are matched to the big－bath firms based on the propensity scores. Post－bath change in information environment has been analyzed by using 3 generally accepted proxies of information asymmetry. [Findings]This paper finds strong evidence that a firm’s information environment degrades substantially following big－bath. Furthermore, the increase in information asymmetry is strongest in the year following big－bath and it weakens over time. [Implications]This paper is the first to analyze the direct relation between big－bath and firm’s information environment in the post－bath period in the Korean context. The finding of the relation between big－bath and firm’s information asymmetry provides important implications to the investors as a firm’s information environment is of vital importance to the information users.