경쟁과 재무성과측정치 사전 조정

[Purpose]This study analyzes the impact of competition on the pre－adjustment of financial performance measures and examines whether this relationship varies depending on earnings volatility. [Methodology]The sample consists of S&P 500 firms in the United States from 2011 to 2014, for which CEO short－term annual incentive contract data were available from the ISS Incentive Lab Database. The pre－adjustment of financial performance measures was identified through a manual review of CD&A disclosures from SEC’s EDGAR system, and hypotheses were tested using logistic regression. [Findings]The empirical results suggest that competition has a significantly positive effect on the pre－adjustment of financial performance measures, indicating that firms are more likely to engage in such adjustments under intensified competitive pressure. In addition, the significantly positive interaction between competition and earnings volatility implies that the effect of competition is more pronounced when earnings volatility is high. [Implications]This study contributes to the literature by identifying competition as a novel determinant of the pre－adjustment of financial performance measures and by demonstrating that earnings volatility moderates the relationship between competition and such pre－adjustments.