Browse > Article
http://dx.doi.org/10.14400/JDC.2021.19.5.241

The Changing Financial Properties of KSE Listed Companies -Focusing on the Modified Jones Model-  

Ko, Young-Woo (Kyonggi University)
Publication Information
Journal of Digital Convergence / v.19, no.5, 2021 , pp. 241-247 More about this Journal
Abstract
This study analyzed the changes in explanatory power of the modified Jones model(1995) for estimating the amount of accruals for Korean Stock Market listed companies from 1990 to 2019. We hypothesized that if the properties of financial variables used in the existing model change over time or change in discretionary ratios, the model's explanatory power will change. As the result of regression models, I found that the explanatory power of the modified Jones model(1995) gradually declined over time. The results may be derived from the increase in accruals itself and the changes in the distribution of variables contained in the model. The results of this research's chronological approach are expected to give important implications to both academic researchers and accounting information users.
Keywords
accruals; discretionary accruals; earnings management; time series analysis; modified Jones model(1995);
Citations & Related Records
연도 인용수 순위
  • Reference
1 J. Y. Kim, H. S. Na & K. H. Park. (2021). Topic Modeling of Profit Adjustment Research Trend in Korean Accounting. Journal of Digital Convergence 18(12), 125-139.
2 P. Dechow. (1994). Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of Accounting and Economics 18: 3-42   DOI
3 I. Dichev, and V. Tang. (2008). Matching and the changing properties of accounting earnings over the last 40 years. Journal of Accounting and Economics 39(1): 163-197.   DOI
4 D. Givoly., and C. Hayn. (2000). The changing time-series properties of earnings, cash flows and accruals: Has financial reporting become more conservative? Journal of Accounting and Economics 29: 287-329.   DOI
5 A. Srivastava. (2014). Why have measures of earnings quality changed over time? Journal of Accounting and Economics, 57, 196-217.   DOI
6 S. M. Kim & Y. J. Kim. (2020). Research Trend Analysis on Living Lab Using Text Mining. Journal of Digital Convergence, 18(8), 37-48   DOI
7 M. Lang, J. Raedy, W. Wilson. (2006). Earnings management and cross listing: Are reconciled earnings comparable to US earnings? Journal of Accounting and Economics 42 (1-2): 255-283.   DOI
8 M. Erickson, S. Wang. (1999). Earnings management by acquiring firms in stock for stock mergers. Journal of Accounting and Economics 27(2): 149-176.   DOI
9 J. Jones. (1991). Earnings management during import relief investigations. Journal of Accounting Research 29, 193-228.   DOI
10 P. Dechow, G. Sloan, and A. Sweeney. (1995). Detecting earnings management. The Accounting Review 70 (2): 193-225.
11 D. A. Cohen, A. Dey, T. Z. Lys. (2008). Real and accrual-based earnings management in the pre-and post-Sarbanes-Oxley periods. The accounting review 83(3), 757-787.   DOI
12 H. J. Moon. (2017). A Comparison of Earnings Quality Between KOSPI Firms and KOSDAQ Firms. Journal of Digital Convergence 15(1), 129-141.   DOI
13 J. H. Back, J. S. Choi. (2017). The Effect of Transaction to the Related-party on the Earnings Management by Considering Controlling Shareholders Ownership, Journal of Digital Convergence 15(1), 209-216.   DOI
14 D. I. KIM. (2020). Analysis of the Relationship between the Initial Public Offering Process and Earnings Management-Focusing on SSE-listed SMEs of China. Journal of Digital Convergence 18(12), 243-249.   DOI
15 S. Kothari, , A. Leone, and C. E. Wasley. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics 39(1): 163-197.   DOI