• The Journal of Information Technology
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• v.1 no.2
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• pp.209-227
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• 1998

This study examines the relation between accruals components of earnings and stock return. Earnings are decomposed into four components: discretionary accruals, nondiscretionary accruals, nondiscretionary income and cash flow from operations. Because reported earnings in financial statement consist of cash flow from operations plus total accruals. We decompose total accruals into a discretionary accruals and a nondiscretionary accruals separately, This paper examines the incremental informational content of discretionary accruals and nondiscretionary accruals components of net income by regressing return on earnings'components in multivariate models. The empirical analysis is conducted on a sample of 1,580 firm-years comprising 158 firms during 1984-1995. Discretionary accruals are obtained by decomposing total accruals into discretionary and nondiscretionary accruals components, using a pooled variation of the Jones model(1991). These findings suggest that the discretionary accruals(measured using a variation the Jones model) is priced by the stock market. Specifically, the discretionary accruals and cash flow from operations are positively associated with the stock return, and also nondiscretionary income, discretionary accruals are positively associated with the stock return. While this result is consistent with the market prices the discretionary accruals because it captures value-relevant information. Additional test report evidence consistent with nondiscretionary accruals conveying information about the stock return.

• The Journal of Information Technology
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• v.7 no.3
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• pp.19-36
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• 2004

This study examines the relation between accruals components of earnings and stock return. Earnings are decomposed into four components: discretionary accruals, nondiscretionary accruals, nondiscretionary income and cash flow from operations. Because reported earnings in financial statement consist of cash flow from operations plus total accruals. We decompose total accruals into a discretionary accruals and a nondiscretionary accruals separately. This paper examines the incremental informational content of discretionary accruals and nondiscretionary accruals components of net income by regressing return on earnings' components in multivariate models. The empirical analysis is conducted on a sample of 1,580 firm-years comprising 158 firms during 1991-2003. discretionary accruals are obtained by decomposing total accruals into discretionary and nondiscretionary accruals conponents, using a pooled variation of the Jones model(1991). These findings suggest that the discretionary accruals(measured using a variation the Jones model) is priced by the stock market. Specifically, the discretionary accruals and cash flow from operations are positively associated with the stock return, and also nondiscretionary income, discretionary accruals are positively associated with the stock return. While this result is consistent with the market prices the discretionary accruals because it captures value-relevant information. Additional test report evidence consistent with nondiscretionary accruals conveying information about the stock return.

• Proceedings of the Korea Water Resources Association Conference
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• 2011.05a
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• pp.423-423
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• 2011

현재 우리나라의 치수대책이나 복구대책은 그 해의 피해액만을 기준으로 이루어지고 있다. 그러나 강우의 특성과 지자체별 홍수피해액의 상관성을 분석한다면 지금의 기준보다 합리적인 치수 대책이나 복구대책을 마련할 수 있다. 본 연구에서는 강우의 특성에 따른 지자체별 홍수피해액을 분석하고자 시 군 구 별로 16년(1994-2009)간의 강우자료(시간최대, 일최대, 누적강우)와 피해액을 비교 평가하였다. 이를 통해 가장 큰 누적피해액을 유발하는 강우사상은 발생횟수나 사상의 크기가 가장 큰 값이 아님을 알 수 있었다. 시간최대강우량의 경우 0-25mm 구간의 발생횟수는 50.72%를 차지했지만 총피해액은 29.08%로 나타났으며, 25-50mm 구간에서의 발생횟수는 37.87%에 불과하나 전체 피해액에서는 42.21%로 가장 크게 나타났다. 일최대강우의 경우에는 0-100mm 의 구간의 발생횟수는 47.59%를 차지했지만 총피해액은 14.73%로 나타났으며, 100-200mm 의구간에서의 발생횟수는 40.64%에 불과하나 피해액은 43.21%로 가장 크게 나타났다. 누적강우의 경우는 0-200mm 구간의 발생횟수는 53.2%, 총피해액은 34.79%를 차지했지만 평균피해액은 800-1000mm 구간이 가장 크게 나타났다. 지자체별로 피해가 주로 발생하는 구간을 이용하여 치수계획이나 복구방안의 기준을 정한다면 현재보다 보다 합리적이고 효과적인 대책을 수립하는데 큰 도움이 될 것으로 판단된다.

• The Journal of Information Technology
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• v.5 no.1
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• pp.79-98
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• 2002

This study examines the association between valuation and accrual information. According to accounting based valuation model, firm's value consists of net book value and abnormal earnings. Net book value and abnormal earnings are determined as the manager's accounting policy. Discretionary accruals may signal the manager's value expectation or be noisy factor of accounting variables. The results of this study are as follows; First discretionary accruals are associated to stock prices negatively but non-discretionary accruals are not to stock prices. This result suggests that discretionary accruals and non-discretionary accruals are the differential factors of the firm value. Second, the product term of discretionary accrual and net book value are associated to the stock price negatively but the product term of non-discretionary accrual and net book value are not associated to the stock price. the results indicate that discretionary accruals are noisy factors of net book value information. Third, the product term of discretionary accrual and net income are associated to the stock price negatively and the product tenn of non-discretionary accrual and net income are also associated to the stock price negatively, the results suggest that discretionary accruals are noisy factors of earnings.

• Korean small business review
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• v.42 no.4
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• pp.123-146
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• 2020

This study, targeting KOSDAQ-listed companies, examined the relationship between variability of accruals and corporate characteristics. First, the analysis results show that executives of companies with high debt ratios are more likely to violate debt contracts, so there is a strong temptation to use discretionary accrual items. Second, for companies with large volatility in operating cash flows, Executives of these companies are strongly inclined to utilize accruals for the purpose of abuse of discretion. Third, the larger the company, the more sensitive it is to political costs, so it is less tempted to use the accruals item than a smaller company. Fourth, the corporate age is thought to be the maturity of the company, Executives of such companies have little room to use accruals to abuse their discretion. Fifth, in the case of profit dummy variables, the companies reporting losses have more temporary accrual items than those reporting profits, so this increases the uncertainty in their accounting information than the latter. Sixth, for those companies that are indicated as inappropriate as a result of audit, the more likely their executives are to use the accrual items, and the lower the quality of their accounting profits is. Lastly, Companies audited by 4 Big domestic accounting firms have less discretionary accrual fluctuations than companies audited by non-big 4 accounting firms. Thus, it was found that the accrual amount allows the discretion of corporate executives differently according to the characteristics of the company.

• The Journal of the Korea Contents Association
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• v.16 no.2
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• pp.580-587
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• 2016

This paper examined the relationship among corporate cash flow, its accruals, and its factors with its continuity of profit and corporate value by regression analysis of KOSDAQ based midsize manufacturing enterprises for 11 years from 2004 to 2014 year. Through this empirical analyze, corporate operators can have a chance to find opportunities to improve the efficiency of business operations, and to the potential investors, it can give the perspective through providing the basic information for the rational investment decisions. Through this analysis, its cash flow, accruals and its factors showed continually a significant relationship with its corporate operating profits and its market values. Thought out the relation analysis, its cash flow, its accurals and the factors of the accruals, account receivables, inventories affected the positive(+) impact on its business profits. But, its account payables affected negative(-) impact on its business profit. The other hand, the cash flow from operating activities and accruals related to capitalization of assets and liabilities fluctuations affected a positive(+) effect on the company market value.

• Journal of Digital Convergence
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• v.19 no.5
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• pp.241-247
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• 2021

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.

• Korean Business Review
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• v.22 no.2
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• pp.61-86
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• 2009

The purpose of this article is to investigate the effects of cash flow and accrual, which are the elements of earnings, and those of the elements of cash flow and accrual on the consistency of cash flow and firm's value. We analyzed 4 kinds of regression models, of which the independent variables are this period's cash flow, the elements of cash flow, accrual, and the elements of accrual, and the dependent variables are the next period's cash flow, and the stock price at the end of financial statements disclosure months, respectively. The sample firms were the manufacturing companies listed on the Stock Exchange 1980 through 2006, of which the fiscal year ended in December. And, the results of the analyses are as follows: Cash flow and accrual are shown to have significant relationships with cash flow consistency and the evaluations of firms' value. And, the elements of cash flow or accrual proved to have more influence than the total amount of them, on cash flow consistency and the evaluation of firms' value. Also, the results present that some of the elements of cash flow and accrual differently affect cash flow consistency and the evaluation of firms' value. Accordingly, this study indicates that each of the elements of cash flow and accrual needs to be considered respectively rather than the total amount of them, in the case that cash flow and accrual are used in the decision-making concerned with the forecast of cash flow and the evaluation of firms' value. This study also shows that each element of cash flow and accrual needs to be used differently for cash flow forecast and the evaluation of firms' value.

• Management & Information Systems Review
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• v.28 no.3
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• pp.69-98
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• 2009

This study investigates in-sample and out-of-sample predictive abilities of accruals and accruals components with respect to future cash flows using models developed by Barth et al.(2001). In tests, data collected fromda62 Korean KOSPI and KOSDAQ listed firms for ccr4-2007 are used. Results of in-sample prediction tests are similar with those of Barth et al.(2001). Their accrual components model is better than other three models(NI only model, CF only model and NI-total accruals model) in future cash flows predictive ability. That is, in the case of in-sample prediction, accrual components excluding amortization have additional information contents for future cash flows. But in out-of-sample tests, the results are different. The model including operational cash flows(CF only model) shows best out-of-sample predictive ability with respect to future cash flows among above four prediction models. The accrual components model of Barth et al.(2001) has worst out-of-sample predictive ability. The results are robust to sensitivity analyses. In conclusion, we can't find the evidence that accruals and accrual components have predictive ability with respect to future cash flows in out-of-sample prediction tests. This results are consistent with results of Lev et al.(2005), and inconsistent with the belief of accounting standards formulating organizations such as FASB and KASB.

• Proceedings of the Korea Water Resources Association Conference
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• 2021.06a
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• pp.342-342
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• 2021

전세계적의 지구온난화에 따른 기후변화 영향으로 기온상승, 강우증가, 해수면 상승 등에 자연재난의 발생이 증가하고 있다. 그 중 가뭄의 경우 전조증상, 발생원인, 발생기간 뿐만 아니라 대상범위나 피해범위도 불명확하다. 가뭄은 근본적으로 강우량의 부족으로 시작되며 농업, 생활, 공업 등의 전반적인 피해를 발생시킨다. 최근에는 기후변화의 영향으로 기온증가, 해수면상승, 극한호우, 메가가뭄 등 전세계적으로 다양한 자연재난이 빈번히 발생하고 있다. 가뭄은 태풍, 홍수, 지진 등의 자연재난 중에서도 가장 광범위한 피해를 유발시키는 재난이라고 할 수 있다. 미국의 National Oceanic and Atmospheric Administration에서는 20세기의 관측된 가장 심각한 자연재난 중 하나로 가뭄이 선정되었으며 최근 기후변화에 따른 기온 및 강수의 증가는 가뭄피해의 직간접적인 영향으로 피해가 급증할 것이라고 하였다. 본 연구에서는 농업·생활·공업 가뭄에 대하여 피해액과 복구액에 대한 정량적 피해특성을 산정할 수 있는 추정식을 제안하고자 한다. 농업·생활·공업 가뭄에 대한 피해액은 다양한 인자들을 고려하며 매년 변화하는 물가를 반영하여 피해액의 추정식을 제안하였다. 또한, 복구액은 가뭄피해발생으로 발생될 수 있는 농업·생활·공업의 특성에 맞는 복구인자를 구성하였으며 피해에 대한 복구뿐만 아니라 인적, 물적 자원에 대한 인자도 포함하였다. 본 연구에서 산정된 농업·생활·공업 가뭄의 피해액 추정식의 경우 정량적 검증을 위해 1965년부터 2018년까지 국내에서 발생된 가뭄피해와를 대상으로 비교 분석하였다.