자본조달방법이 이익조정과 영업주기에 미치는 영향

This study investigates the effect of types of financing on financial reporting considering the different effect of financial variables on investment decisions. Specifically, this paper investigates that the effect of equity financing and liability financing on earnings management and operating cycle. We find that discretionary accruals and operating cycles decrease prior to liability while discretionary accruals and operating cycles increase prior to seasoned equity offering. Moreover, we perform the analysis by categorizing liability financing into loan and bond issue. We find that operating cycles decrease prior to loan financing significantly while operating cycles increase in large prior to bond issues significantly. To figure out the results of bond issues, we perform additional test after categorizing bond issues into special bond issues and plain vanilla bond issues. We find that discretionary accruals increase prior to special bond issues insignificantly and operating cycles decrease prior to plain vanilla bond issues insignificantly. This study contributes to the literature by showing that different financial variables are adjusted prior to financing according to the types of financing because investment decisions are affected differently by financial variables according to the types of financing. Second, this study can provide clearer explanation for different empirical results about the associations between debt capital and earnings management. Last this study contributes to the literatures by suggesting the variable, operating cycle as an important variable to liability financing, especially loan.