연결다각화 수준과 지배기업의 이익조정

[Purpose]The purpose of this study is to empirically investigate whether the management’s earnings management behavior increases (or decreases) relative to other companies in a parent company that diversifies into a form of holding subsidiaries. In particular, it focuses on examining which hypothesis is more supported between the information asymmetry hypothesis and the accrual offset hypothesis in the Korean market. [Methodology]After selecting a sample of listed companies from 2003 to 2020, the relationship between the level of consolidation diversification and discretionary accrual is verified through regression analysis. [Findings]We find a statistically significant negative relationship between the level of consolidation diversification and the parent company’s earnings management behavior (absolute value of discretionary accrual). In addition, the sample with positive (＋) discretionary accrual show a negative relationship between the level of consolidation diversification and discretionary accrual, and the sample with negative (－) discretionary accrual show a positive relationship between the level of consolidated diversification and discretionary accrual. [Implications]The results of this study suggest that for companies with a high level of consolidation diversification, the parent company’s incentive to manage earnings is reduced due to the accrual offset effect and the internal control effect between the consolidated companies.