Browse > Article
http://dx.doi.org/10.5392/JKCA.2019.19.05.280

The Matching Principle, Earnings Persistence and Information Asymmetry  

Lee, Kyu-Jin (한양대학교 회계학과)
Publication Information
The Journal of the Korea Contents Association / v.19, no.5, 2019 , pp. 280-286 More about this Journal
Abstract
This study first examines whether the matching principle reduces information asymmetry and verifies the effect on earnings sustainability and information asymmetry. In the presence of information asymmetry between managers and information users, managers can reduce information asymmetry by increasing the quality of earnings. Information asymmetry is measured by the financial analysts' earnings forecast variance. When we look at the results of previous studies, verify whether information asymmetry decreases as the response to the revenue cost increases and whether negative relationship between profit persistence and information asymmetry appears when the response to the revenue cost is high. As a result, firms with high revenue cost response showed a decrease in information asymmetry. The persistence of the earningss from the high earnings-cost response shows that the analysts' earnings forecast dispersion decreases. This means that the better the response to the revenue cost, the better the quality of the earnings and the less the information risk about the uncertainty of the enterprise. This study is different from the previous studies in that it analyzed whether the persistence of the earnings that responded to the high revenue cost reduces the information asymmetry. The results of this study suggest that managers can reduce the information asymmetry by carrying out appropriate revenue - cost responses, which provides important implications for stakeholders who use accounting earnings information.
Keywords
Matching Principle; Earnings Persistence; Information Asymmetry;
Citations & Related Records
연도 인용수 순위
  • Reference
1 정석우, "재무분석가의 분석기업 결정과 예측특성에 영향을 미치는 요인," 회계학연구, 제28권, 제4호, pp.61-84, 2003.
2 M. T. Bradshaw, S. A. Richardson, and R. G. Sloan, "Do Analysts and Auditors Use Information in Accruals?," Journal of Accounting Research, pp.45-74, 2001.
3 백원선, "회계환경의 변화와 수익비용대응 원칙," 경영학연구, 제40권, 제1호, pp.57-77, 2011.
4 백원선, "수익비용대응원칙과 이익의 질," 회계학연구, 제36권, 제2호, pp.101-127, 2011.
5 백원선, 박성진, "기업수명주기, 수익비용대응 및 차별적 비용인식," 회계학연구, 제38권, 제2호, pp.215-245, 2013.
6 B. Baik, "Self-Selection Bias in Consensus Analysts' Earnings Forecasts," Asia-Pacific Journal of Financial Studies, Vol.35, No.6, pp.141-168, 2006.
7 한봉희, "증권분석가의 회계이익 예측 상이도가 예측편의와 미래주가에 해 내포하는 의미," 회계학연구, 제21권, 제4호, pp.1-20, 1996.
8 I. Dichev and V. Tang, "Earnings Volatility and Earnings Predictability," Journal of Accounting and Economics, Vol.47, No.1-2, pp.160-181, 2009.   DOI
9 노밝은, "수익비용대응과 재무분석가의 이익예측가능성," 회계저널, 제22권, 제4호, pp.213-238, 2013.
10 정현욱, 이강일, "수익비용대응 수준이 감사시간에 미치는 영향," 세무와 회계저널, 제15권, 제4호, pp.113-148, 2014.
11 S. Das, C. Levine, and K. Sivaramakrishnan, "Earings Predictability and Bias in Analysts' Earnings Forecasts," The Accounting Review, Vol.73, pp.277-294, 1998.