• Journal of Digital Convergence
• /
• v.19 no.2
• /
• pp.51-60
• /
• 2021

In this study, Based on the analysis of the correlation between internal control quality and earnings management, this article discusses the correlation between internal control quality and real activity earnings management and accrued earnings management. For this study, by introducing the concept, classification, measurement method and model of internal control and earnings management, the research hypothesis of this article was proposed. In this analysis, Use the relevant measurement model to calculate the actual activity earnings management level and accrued earnings management level of the enterprise, as the explained variable, establish a model for regression and were analyzed. Also, this study could find the final results draws a conclusion through empirical research: there is a significant negative correlation between the internal control quality of listed companies, real activity earnings management, and accrued earnings management. On the basis of this conclusion, the analysis of possible causes provides a basis for the development of internal control theory and the supervision and control of earnings management behavior in the future.

• Journal of the Korea Convergence Society
• /
• v.10 no.12
• /
• pp.299-305
• /
• 2019

This study analyzed the relationship between the debt ratios of Korean and Japanese manufacturing firms with accruals and actual earnings managements after the global financial crisis. This study was conducted on Korean and Japanese firms from 2008 to 2015. As a result, the Korean firms, the higher (lower) debt ratio is, more up(down)side earnings management using discretionary accruals and operating cash flow. In contrast, the Japanese firms found that the higher(lower) the debt ratio is, more up(down)side through its actual activities (operating cash flows, manufacturing costs, discretionary costs) rather than accruals. This study establishes the academic basis for the decision-making of Korean-Japanese firmss by using the sample of each country to check what kind of decision-makers are making earnings managements at the present time when the relationship between Korea and Japan has suffered due to export restrictions. It is meaningful in that it was.