연결재무제표의 비지배지분과 경영자의 이익조정에 관한 연구

The objective of the study is to examine whether the non-controlling interests in consolidated financial statements affect manager’s earnings management, which is measured not only discretionary accruals but also real activity earnings management. According to International Financial Reporting Standards (IFRS hereafter), adopted mandatorily for Korea in 2011, parent and subsidiary companies are considered as a single economic entity. They are required to report consolidated financial statements as the main financial statements. My study focuses on the non-controlling interest and net income attributable to non-controlling interests reported in consolidated financial statements by entity theory. As a result of this study, an increase in non-controlling interest or net income attributable to non-controlling interests seems to improve the accounting quality by reducing earnings management using discretionary accruals, but it can be seen that managers are raising profits using real activity earnings management. This study contributes greatly to the practice as well as academia in that it suggests that investors, managers, and financial analysts need to understand the components of consolidated net income correctly.