외환위기와 보수적 회계처리 = Korean Economic Crisis and Conservative Accounting

다국어 초록 (Multilingual Abstract)

This paper investigates whether the extent of accounting conservatism increases after the Korean economic crisis(KEC) occurred in the late 1990s. The KEC was a big turning point in the history of Korean accounting practices. Numerous accounting regulations were enacted, and accounting standards were revised to enhance the transparency of accounting information and global convergence. In addition, many accounting frauds were revealed and litigation was increased when large firms went bankrupt during the KEC. These environmental changes might cause accountants and auditors to be highly conservative in their practices. Moreover, the implementation of Securities-related class action would make accountants more conservative. This research uses three alternative measures of accounting conservatism to compare the degree of financial reporting conservatism before and after the KEC. The three measures are: (1) Basu(1997)`s measure that shows more timely recognition of losses than of gains, (2) Beaver and Ryan (2000)`s measure of book-to-market ratios which reflects biased accounting recognition and lagged accounting recognition, and (3) discretionary accruals that examine manager`s accounting discretion. The research concludes that all three measures consistently indicate that the accounting conservatism after the KEC is significantly higher than that before the KEC.

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