Does Real Activities Management Influence Earnings Quality? Analysis on the Persistence of Earnings and Cash Flows and Future Earnings Reflected in the Stock Return

• 발행기관: 한국회계정보학회
• 저자명: Kwang Hwa Jeong Seung Uk Choi
• 간행물 정보: 『한국회계정보학회 학술대회발표집』2017년 추계학술대회 발표집, 307~334쪽, 전체 28쪽
• 주제분류: 경제경영 > 회계학
• 파일형태: PDF
• 발행일자: 2017.11.18

영문 초록

We explore the association between real earnings management and earnings quality. Specifically, we examine whether real activities management influences the persistence of earnings and cash flows, respectively. Further, we investigate the effect of real management on the relation between current stock returns and future earnings. Using 15,826 firm-years observations listed in the Korean stock market from 2000-2015, we find that real earnings management is negatively associated with the persistence of current earnings for future earnings. We also find that real management restricts the persistence of cash flows for future cash flows. Lastly, we find that real earnings management prevents the market from assessing firms’ future earnings in the current stock prices. Overall, our findings are consistent to the argument that decreased persistence of earnings and cash flows explains the negative relation between real earnings management and firm value.

목차

I. Introduction

II. Prior literature and hypotheses development

III. Research design and sample selection

IV. Empirical results

V. Conclusion

REFERENCES

참고문헌

키워드

Earnings Persistence Cash Flow Persistence Earnings Quality Real Earnings Management Future Earnings Response Coefficient.