내부회계관리제도의 취약점이 이익하방위험에 미치는 영향

The internal accounting control system was introduced to increase corporate accounting transparency and secure investor trust, and its effectiveness has already been presented in many previous studies. The weak internal accounting control system of a company is likely to permit fraud or errors in its financial statements, which can lead to a decrease in the quality of financial reporting and an increase in corporate risk. Therefore, this study empirically analyzed the relationship between companies with weak internal accounting control systems and earnings downside risk. We examined non-financial corporations listed on the stock market and KOSDAQ from 2014 to 2019 and measured the risk, using the earnings downside risk measures proposed by Konchitchki et al. (2016). Earnings downside risk can more appropriately capture the risk perception of investors who place more weight on losses than profits because it accommodates the asymmetry of profits by capturing the fundamental risk of the company and measures the volatility of observations in areas where actual profits fall short of the expected level. The results of the analysis showed that companies that reported weaknesses in their internal accounting control systems had a positive (+) relationship with earnings downside risk at the 1% significance level. This study differs from previous studies in that it analyzed the earnings downside risk rather than the standard deviation of earnings or stock returns, which are used as risk measures in the existing accounting and financial fields.