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http://dx.doi.org/10.5762/KAIS.2014.15.4.1932

Relationship between Debt Ratio and Earnings Effect of Earnings Management's Estimating Method, Debt Type  

Park, Won (Division of Business Management, Uiduk University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.15, no.4, 2014 , pp. 1932-1937 More about this Journal
Abstract
This paper examines whether debt ratio effects earnings management. There are various methods that estimate earnings management. This paper examines whether these methods impact on the relationship between earnings management and debt ratio. In addition, this study examines whether these relationship effects of debt type. Previous studies in this area haven't examined the relationship between debt ratio and earnings management in Korea. These studies didn't consider earnings management's method to analysis for this relationship. This paper tests the relationship between earnings management and debt ratio with methods of earnings management unlike from previous studies. Results are summaried as following. First, the relationship between debt ratio and earnings management was different for these methods. Abnormal Accruals that used estimation of eanrnings management in previous studies didn't examine these results that debt ratio effects of earnings management. However, it was significant positive the relationship between real activity management and debt ratio.
Keywords
Abnormal Accruals; Debt Ratio; Financial Debt; Methods of Earnings Management; Operating Debt; Real Activity;
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