기업의 사내유보이익과 현금보유가 이익조정에 미치는 영향

This study empirically analyzes the impact of a company's retained earnings and cash holdings on earnings management after the adoption of the Korean International Financial Reporting Standards (K-IFRS). The research used annual financial data from 9,216 companies available between 2011 and 2020. The results of the empirical analysis are as follows: First, there is a negative (-) relationship between the level of retained earnings and cash holdings and the discretionary accruals variable. This suggests that companies with high retained earnings and cash holdings tend to choose downward earnings management, while companies with low retained earnings and cash holdings are more likely to opt for upward earnings management. Second, a similar negative (-) relationship was found between the level of retained earnings and cash holdings and the actual earnings management variable, showing results similar to those of discretionary accruals. These results indicate that companies with high retained earnings and cash holdings have less need for earnings management to raise external funds and face less pressure to artificially adjust cash flow or production during actual earnings management. The contributions of this study are as follows: First, unlike previous studies that focused on the period before the adoption of K-IFRS or were limited to major companies, this study analyzes the empirical changes following the adoption of K-IFRS. Second, it analyzes both retained earnings and cash holdings using the same sample, highlighting their relationship. Third, the findings suggest that companies with high levels of retained earnings and cash holdings have less incentive to manipulate earnings for external financing purposes, providing important insights for decision-making in managerial financial strategy.