This study investigates 1,896 special depreciation cases of listed companies on the Korean Stock Exchange. The results show that special depreciation methods are used 63% of listed companies. And most of listed companies have used special depreciation...
This study investigates 1,896 special depreciation cases of listed companies on the Korean Stock Exchange. The results show that special depreciation methods are used 63% of listed companies. And most of listed companies have used special depreciation method as a income and tax smoothing device. This implies that the reported earnings should be evaluated carefully when firms report their special depreciation expense. In addition, More studies on the motivation of firm's special depreciation are needed to get a finer conclusion.