기관투자자의 거래활동이 회계이익의 정보적 속성에 미치는 영향

Abstract

This study is based on the previous studies that institutional investors have effectively performed check and observation on the earnings management. This study considered the managers whose firm have active transactions of institutional investors have more chances of offering quality accounting information so the researcher will verify whether institutional investors substantially perform a meaningful role in the market. This study analyzed that various earnings attributes influenced by institutional investors’ trading volume to resolve limitations of data from the previous studies which used the amount of shares of institutional investors. Expecially, this study is going to compare the effects of institutional investors’ trading volume on informative properties of earnings by subdividing earnings attributes into accruals quality(AQ), persistence, smoothness, timeliness and conservatism. For this study, 11,243 business-the year samples excepting the stock market and KOSDAQ were analyzed to find out the relation between the institutional investors’ trading volume and the earnings attributes. The followings are the findings. First, the higher trading volume of institutional investors happened, the better earnings quality. This means that firm which have higher trading volume of institutional investors have more chances of observation by institutional investors. This reduces managers' opportunistic earnings adjustment actions and offers more sound earnings. Second, even though the relation between the trading volume of institutional investors and persistence was not meaningful, persistence was higher if the trading volume of institutional investors are higher based on analysis into KOSDAQ firm. Third, smoothness increased as the firm whose trading volume of institutional investors are higher. This indicates that the firm whose trading volume of institutional investors are higher prefer earnings flexibility by increasing the earnings prediction possibilities of investors and lowering information risk. Fourth, in the relation between the trading volume and institutional investors, higher trading volume increase timeliness. Thus, the firm which have higher trading volume of institutional investors recognize the economic losses and perform decisions which reflect on the accounting earnings. These actions increase the information and clarity of the accounting earnings of those firm and immediately reflect on stock prices. Finally, there was no meaningful relation between the trading volume of institutional investors and conservatism. Overall, the higher trading volume of institutional investors firm have, the more improved earnings attributes were indicated. This means that firm which have higher trading volume of institutional investors are the targets of investors. Persistent check and observation effectively affect management and the flexibility increased to offer the accounting earnings including informationally superior attributes. Accordingly, this study confirmed that managers' opportunistic actions included in the accounting information were rather minimized through the effect of outside observation of institutional investors in Korea.