감리지적기업과 회계이익과 세무이익의 차이 및 실제이익조정

초록

We examine the extent to which temporary book－tax difference(hereafter, BTD) and real activity－based earnings management(hereafter, REM) explain the characteristics of regulatory reviewed firms. Drawing on the literature on earnings management, a regulatory reviewed company is considered as a firm conducted the earnings management. Therefore prior researches concerning the characteristics of earnings management firm explored the association between regulatory reviewed firms and earnings management. Managers attempt to increase book income while avoiding taxes on fraudulent components, so BTD will differ between fraud and control samples. We expect that temporary portion in the BTD is related earnings management by the literature on BTD. The REM are useful tools when we explain not only earnings management through real activities manipulation－sales manipulation,overproduction and reduction of discretionary expenditure－ but also accrual based earnings management. The samples are Korean stock exchange (KSE) listed firms that are punished by Financial supervisory service(FSS) enforcement action from 1996 to 2006. We use 96 fraud firm－year data. For matched－pair analysis, each fraud firm－year sample is matched with three non－fraud firmyears by year, industry code, type of external auditor and firm size. Therefore our final sample consists of 384 firm－years (consolidating 96 fraud firm－year data and 288 matched non－fraud firm－years). Using logistic regression models, we find the no differences of temporary BTD between fraud firms and matched non－fraud firms. This result suggests that managers pay taxes on fraudulent components, so temporary BTD can not explain the characteristics of regulatory reviewed firms. We also find the association of REM and the characteristics of fraud firms. Specifically, abnormal cash－flow have negative sign with fraud firms and cost of production and cost of discretionary expenditure have positive sign. Our results suggest that the REM are useful to detect earnings management, while temporary BTD can not capture earnings management. Our study contributes to earnings management literature by examining the usefulness of REM of firms under FSS enforcement action.

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