Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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Does Accruals Quality Influence Management Choice on Disclosure Contents?

  • Kwang-Wuk Oh (College of Global Business, Korea University) ;
  • Kwang-Hwa Jeong (College of Business Administration, Kangwon National University)
  • Received : 2024.05.30
  • Accepted : 2024.06.27
  • Published : 2024.06.30
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Abstract

Purpose - The purpose of this study is to examine the relation between accruals quality and managers' choice on the type of voluntary disclosure. Design/methodology/approach - Samples of this study are 8,248 firm-year observations listed in Korea Stock Exchange. Poisson regression analysis was hired in order to analyze the association between disclosure frequency and accruals quality because the dependent variables are count data. Findings - First, this study finds that managers' use of non-earnings-related type of voluntary disclosure is negatively related to accruals quality while their use of earnings-related disclosure is positively related to accruals quality. Second, discretionary accruals quality as well as innate accruals quality is significantly associated with disclosure frequency. Research implications or Originality - This study extends the line of research by incorporating the content of voluntary disclosure, earnings- and non-earnings-related information. The results of this study suggest that accruals quality may play a role in the choice of disclosure manner when investigating managers' voluntary disclosure.

Keywords

Acknowledgement

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2022S1A5A2A01047399) and by the Korea University Grant.

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