기업특성과 재무비율에 의한 건설기업의 이익조정에 관한 연구

Abstract

The study aims to examine whether the managers of the construction industry manage reported earnings to meet accomplishing their purpose. Recently, the domestic construction business shows clear signs of declining because of eliminating the governmental supporting for 4 river project. Inactivity, slump and poor showing of construction business has been assumed very unique or serious dimensions because construction industry produces on orders that affect the very existence of the company. From a practical point of view, construction firms may be in a financial crisis unless they would not take the amount orders received. Moreover, Korea government has formulated new standards for improving transparency in the practice of financial accounting and construction firms are ruled the application of percentage-of-completion method in the construction contracts(K-IFRS NO. 1011). This method is fit for the reliable estimation of the percentage of construction process. The current standards, however, do not assess the percentage of completion more accurately and do not specify how to choose the method of measuring extent of progress toward completion according to the detail construction sectors. The whole construction firms are plunged in confusion, and they are willing to take advantage of this condition toward their own intention and discretion. As a result, the reliability and transparency of financial reporting in construction industry could be lowered. In addition to, construction firms are in the faced with financial regulations according to the Evaluation and Public Announcing System of the Contractor's Construction Capacity. It can be absolutely necessary for firms to take orders to maintain their existence with a good financial ratios. In this case, the managers of construction business may do exercise earnings management. This study analyzes three hypotheses; 1) construction firms increase their earnings in comparison with the other industries(main variables BUILD) 2) construction firms increase their earnings according to their an intrinsic attributes such as the size of sales(BSALE), the adoption of IFRS(BIFRS) and history of engaging career(BLONG) 3) construction firms increase their earnings to meet a fit financial ratios such as current ratios(BCR), return on sales(BROS) and turnover ratios(BTURN). Hereafter, B represents BUILD that are dummy variables 1 if a firm is the only construction firms, otherwise 0, and the above capital letters of B-types are the main independent variables. To test the hypotheses, the models include the discretionary accruals(DA) estimated by modified Jones model(Dechow et al., 1995) as the main dependant variables. Also the test models contains other control variables such as firm size(SIZE), debt ratio(DEBT), block-holders(BLOK), the ownership of foreign investors(FOR) and big auditors(BIG). This study shows the empirical results through statistical descriptive statistics, coefficient of correlation, mean difference analysis and the multiple regression tables. The test sample consists of 3,286 firm-year data, selected from the KRX listed companies of the fiscal year during 2004-2012(9 years). The majority of hypotheses is accepted. These results imply that construction industry boost earnings to get orders to survive at the condition of competitive bid, and it is different for the managers of construction firms to abuse their discretion for financial reporting according to the basis on the characteristics of firms and financial statements.