• Industry Promotion Research
• /
• v.9 no.3
• /
• pp.1-11
• /
• 2024

At shareholders' meetings, minority shareholders are inferior in information to owners and majority shareholders, and they are often excluded from important decision-making. As a result, the rights and interests of minority shareholders are often damaged, which acts as a factor that hinders corporate value. The electronic voting system is expected to encourage minority shareholders to participate in management decision-making, which is expected to help increase corporate value. The results of the analysis in this study are summarized as follows. First, it was found that there was no difference between the earnings persistence of companies that introduced the electronic voting system and the earnings persistence of companies that did not. Second, we found no evidence that the introduction of the electronic voting system would increase the value of firms. Third, the effect of earnings persistence on corporate value of companies that adopted the electronic voting system was no different from that of firms that did not adopt it.

• Journal of the Korean Home Economics Association
• /
• v.39 no.3
• /
• pp.35-45
• /
• 2001

The purposes of this study are to identify the factors associated with the degree of role conflict and the likelihood of exits of the labor force of working wives and to investigate the relationship between the role conflict and job quitting behavior of working wives. The major results of this study are as follows. First, the ratio of reservation wage relative to wife's earnings, wife's earnings, husband's behavioral support, the presence of child under age of 6, the type of occupation, and job satisfaction are associated with the role conflict of working wives. Second, there is a significant difference in the job quitting behavior of working wives according to the degree of role conflict of working wives. Third, the level of role conflict, educational level, the ratio of resonation wage relative to wife's earnings, husband's behavioral support, the presence of child under age of 6, the type of occupation, and job satisfaction are associated with the likelihood of job quitting of working wives.

• Asia Pacific Journal of Business Review
• /
• v.2 no.2
• /
• pp.17-44
• /
• 2018

This study investigates whether the positive relation between the real earnings management (REM) and audit fees reported by Choi et al. (2016) differs before and after the Sarbanes-Oxley Act (SOX), and varies cross-sectionally depending on the existence of internal control problems. Using a large sample of U.S. firms, we find that the positive relation between REM and audit fees is stronger than the same relation between AEM and audit fees in the post-SOX period, whereas the opposite is true in the pre-SOX period. We also find that the positive relation between REM and audit fees is intensified for firms with material internal control weaknesses.

• Journal of the Korean Data and Information Science Society
• /
• v.25 no.6
• /
• pp.1557-1567
• /
• 2014

In this paper, I propose a general hypothesis that after the enactment of the Sarbanes-Oxley Act (SOA) financial statements convey more accurate and reliable corporate information to investors who in turn reflect such improvements in stock prices and test four practical hypotheses that simultaneously feature the degree of information asymmetry, forecast bias, and investor reaction to biased earnings information. The empirical results unanimously suggest that the post-SOA investors take advantage of the improvement in informational efficiency and accuracy and actively adjust for analyst forecast bias in earnings forecasts. The SOA indeed appears to achieve its primary goal of investor protection.

• The Journal of Information Technology
• /
• v.8 no.3
• /
• pp.35-49
• /
• 2005

This study examines that pricing multiple on and incremental explanatory power of equity book value(earnings) increase(decrease) as financial health decrease. Test using a sample of 75 bankrupt firms and test using a cross-sectional, pooled sample both yield inference consistent with predictions. It is thus hypothesized that the more bankrupt time we, the higher(lower) pricing multiple book value of equity(earnings) obtained. Findings are robust to inclusion of for debt/assets ratio, ROA, and ROIC. Overall, the results is the hypothesis.

• Knowledge Management Research
• /
• v.20 no.1
• /
• pp.195-213
• /
• 2019

This paper investigates the effects of firms' foreign market focus on the optimistic bias of analysts' earnings forecasts. Based on a sample of 852 U.S. manufacturing firms between 1994 and 2015, our empirical results suggest that higher growth of foreign market focus is associated with greater levels of analysts' forecast optimism. Drawing on the CEO career horizon and the upper echelon theory literature, we find evidence that CEOs' career horizon and functional background as a CFO moderates the relationship between the growth rate of foreign market focus and analysts' forecast optimism. This shows that while financial analysts perceive internationalization strategies as signaling growth potential, such perception can vary depending on CEOs' individual characteristics.

• The Journal of Economics, Marketing and Management
• /
• v.2 no.1
• /
• pp.18-28
• /
• 2014

In this research we investigate the effect return on assets, return on equity, profit margin and earnings per share on working capital management. Current ratio and quick ratio used as proxies for working capital management. The research sample includes 451 year -firm of Tehran Stock Exchange (TSE) listed companies for period 2007-10. The multiple linear regressions were applied to test the research hypotheses. The results showed that, return on assets and earnings per share have a negative impact on working capital management. The results also show that earnings per share and profit margin positively associated with the firm performance.

• Journal of Animal Science and Technology
• /
• v.53 no.4
• /
• pp.319-324
• /
• 2011

This study was conducted to analyze demerits of the sire evaluation system using annual earnings and to examine relationship between annual earnings and finish time in home-produced thoroughbred racehorses. The average number of progenies and number of starts per sire were 34 heads and 221 times, respectively. On the other hand, the number of progenies with the average age of 2 years and the number of starts were 9 heads and 25 times, respectively. The earnings of the horses with the age of 2 years accounted for 8.3% of annual earnings. The simple correlation coefficient between the number of progenies and the number of starts in annual earnings were 0.922 and 0.934, respectively. The correlation coefficient between the number of progenies and the number of starts was very high (0.985). The number of progenies and starts of sires for the first year of test career were very low (6 heads and 17 times), and there was very close relationship between number of progenies and annual earnings by the year of test career. The number of progenies was over 40 heads during the first 4 years of test career, and as the number of progenies increased the average earning index increased. The average earning index of sires with less than 30 progenies was lower than 1.00. When the number of progenies was less than 10, the average earning index was in the range of 0.06~0.13, indicating that the number of progenies affects much for determining the ranking of sires. The correlation coefficient between breeding value for finish time and annual earnings per start was very high (-0.524~-0.633) compared with other traits.

• Management & Information Systems Review
• /
• v.36 no.3
• /
• pp.151-165
• /
• 2017

This study investigates the effect of revenue recognition by percentage of completion method on financial analysts' earnings forecasting information in order industry. Specifically, we examines how the analysts' earnings forecast errors and biases differ according to whether or not to report the unbilled revenue account balance and the level of unbilled revenue account balance. The sample consists of 453 firm-years listed in Korea Stock Exchange during the period from 2010 to 2014 since the information on unbilled revenue accounts can be obtained after the adoption of K-IFRS. The results are as follows. First, we find that the firms with unbilled revenue account balances have lower analysts' earnings forecast accuracy than the firms who do not report unbilled revue account balances. In addition, we find that the accuracy of analysts' earnings forecasts decreases as the amount of unbilled revenue increases. Unbilled revenue account balances occur when the revenue recognition of the contractor is faster than the client. There is a possibility that managerial discretionary judgment and estimation may intervene when the contractor calculates the progress rate. The difference between the actual progress of the construction and the progress recognized by the company lowers the predictive value of financial statements. Our results suggest that the analysts' earnings forecasts may be more difficult for the firms that report unbilled revenue balances as applying the revenue recognition method based on the progress criteria. Second, we find that the firms reporting unbilled revenue account balances tend to have higher the optimistic biases in analysts' earnings forecast than the firms who do not report unbilled revenue account balances. And we find that the analysts' earnings forecast biases are increases as the amount of unbilled revenue increases. This study suggests an effort to reduce the arbitrary adjustment and estimation in the measurement of the progress as well as the introduction of the progress measurement method which can reflect the actual progress. Investors are encouraged to invest and analyze the characteristics of the order-based industry accounting standards. In addition, the results of this study empower the accounting transparency enhancement plan for order industry proposed by the policy authorities.

• Management & Information Systems Review
• /
• v.34 no.2
• /
• pp.113-130
• /
• 2015

This study considers the relation between firms' earnings management and credit rating. Unlike preceding papers only focusing earnings management by accrual(thereafter, AM), this paper examines the effect of accrual earnings management(AMs) and real earning management(thereafter, RM) on credit rating. RMs have more negative effects on firms' forward cash flow generation abilities and long term operating performances than AMs. So, RMs are more negative signals for credit analysts than AMs. But credit analysts have much difficulty in seeing through RM, because if credit analysts want to find out RMs, they have to understand firms' internal operating activities, cost structures, receivables collection practices, and review whether profit distortions are due to abnormal change of them. Sample of this study consists of 2,150firm-year data listed companies from 2002 to 2010. Empirical evidence shows that AMs and RMs are negatively related to credit rating. This result implies that credit analysts see through AMs and RMs in interpreting financial informations, that is to say, they discount credit rating in considering level of earnings management that consist of real activity and accrual earning management. This paper also finds that RMs are more negatively related to credit ratings than AMs. This result suggests that credit analysts don't take RMs into account in credit rating process as much as AMs.