이사책임감면규정과 사내이사 규모가 이익조정에 미치는 영향

[Purpose]Inside directors, typically executives within a company, possess advantageous access to internal information and are capable of direct intervention in accounting－related decision－making due to their extensive experience within the company. Furthermore, as the influence of inside directors increases, they may encounter reduced pressure regarding earnings management, facilitating effective monitoring of executives’ self－interested actions. This study aims to examine the impact of inside directorship size and liability limitation provisions on earnings management, thereby exploring the role of inside directors in companies that have adopted such provisions. [Methodology]This study analyzed the impact of inside directorship size and liability limitation provisions on earnings management, thereby elucidating the role of inside directors in companies that have implemented liability limitation provisions. [Findings]Companies that have adopted liability limitation provisions exhibited relatively higher levels of earnings management compared to those that have not. However, it was found that as the size of inside directors in companies that adopt liability limitation provisions increases, the level of earnings management actually decreases. [Implications]The findings of this study suggest that the role of inside directors is crucial in establishing bold management strategies, rather than opportunistically exploiting liability limitation provisions. This implies a potential contribution to practitioners and academia by emphasizing the importance of inside directors in effective management practices.