상호출자제한기업집단 소속 여부와 분기 이익조정

Abstract

This study aims to analyze the effect of a mutual shareholding limited business group system which is designated and managed by the Korean Fair-Trade Commission on corporate discretionary accounting choices. According to Watts and Zimmerman (1986), accounting numbers are often used to overcome political circumstances when companies are exposed due to government regulations. As a result of analyzing the listed companies from 2015 to 2021, it was confirmed that the size of quarterly earnings management measured by quarter-year-industry based on Kothari, Leone, and Wasley (2005)’s management performance-controlled model was statistically significantly larger for companies belonging to a mutual shareholding limited business group than those not belonging to a business group. In addition, it was found that earnings management was more aggressive in the fourth quarter than in other quarters. And these results were found to be supported regardless of the largest shareholder’s share. This study has academic significance in that it provides a deep understanding of the impact of accounting practice following the designation of a mutual shareholding limited business group system, a representative business group in Korea.