손실과 이익감소 회피목적의 이익조정이 회계정보 가치관련성에 미치는 영향

The purpose of this study is to verify how market participants perceive earnings management to avoid loss and profits reduction by analyzing the relationship between earnings management to avoid loss and profits reduction on accounting information value relevance. Many previous studies have verified the effects of governance elements on accounting information value relevance. However, the effect of earnings management to avoid loss and profits reduction on accounting information value relevance has not yet been verified. The multiple regression models were used to verify the effect of earnings management to avoid loss and profits reduction on the value relevance of accounting information. This study shows that the relationship between book and profit value, and stock price were changed to a negative relationship in companies involved in earnings management to avoid loss and profits reduction. This result indicates that earnings management to avoid loss and profits reduction is recognized as opportunistic earnings management in the capital market, which negatively affects the value relevance of accounting information. These results are perceived as opportunistic earnings management in which earnings management to avoid loss and profits reduction in companies with audit committees unreasonably bring future profits to the present in the capital market. This study will provide new insights on how market participants should evaluate companies that have achieved target profits when using accounting information to assess firm value. In addition, this study suggests that internal monitoring organizations should develop various monitoring techniques to suppress opportunistic earnings management.