영업이익 산정방식에 따른영업이익의 가치관련성 비교 = Relative Value Relevance of Operating Income under K-IFRS vs. K-GAAP

다국어 초록 (Multilingual Abstract)

This paper examines the relative value relevance of the alternative accounting method for operating income recognition principle under K-IFRS(Korean International Financial Reporting Standard) and K-GAAP(Korean Generally Accepted Accounting Principle). Unlike K-GAAP which provide specific rules to recognize operating income in the Income Statement, K-IFRS do not even require to report operating income separately from non-operating income. Thus, there is concern about the discretion that managers exercise in choosing items to be excluded or included in the operating income under IFRS. Moreover too much diversity in presentation may also create a perception of differences where they do not actually exist, and contribute to inefficient pricing of equity by the capital markets to the detriment of both companies and investors. To compare the relative value relevance of two operating income measures we use a book value and earnings regression to determine which regression has the higher adjusted R-square and which operating income coefficient has the higher multiplier. We collected data on the listed companies in Korea for the year of 2011 and our final sample consists of 1,504 firm-year observations. The empirical results show that operating income reported under K-GAAP are more value relevant than a measure of operating income reported under K-IFRS. We may conclude from the result that since K-IFRS operating income contain many nonoperating items that reduce its value relevance compared to K-GAAP operating income, comparing the value relevance of K-IFRS operating income favors K-GAAP operating earnings. Our evidence is important because we provide the first evidence regarding the comparative value relevance of two different operating income measures. Furthermore, our finding is in line with the direction of the revised policy plan for the operating income recognition principle from KASB(Korea Accounting Standards Board).