수익비용대응과 재무분석가의 이익예측정확성 = A Study on the Matching Revenue-Expense and Analysts` Forecast Accuracy

다국어 초록 (Multilingual Abstract)

This study examines whether analysts` forecast accuracy varies depending on matching levels. The matching principle refers that the expenses recognition should be occurred while the revenue is recognized by matching two terms. The principal has cast the base of accrual bases accounting in that the profitability (revenues) of a firm properly matches to the efforts(expenses) that the firm makes by adjusting the recognition time of revenues and expenses. Recently adopted Korean International Financial Reporting Standards (here after, K-IFRS) does not provide detailed financial statement as they are principles-based accounting standards. Since a firm can make decisions upon the title of account as long as it is not imposed, even the same earnings can yield different prosperities depending on firms. The obtained by regressing current revenues on current expenses is based on Dichev and Tang (2008) is used as the proxy of matching. Analysts` forecast accuracy is calculated by subtracting actual earnings from earnings forecasts for each firm. Analysis of the Korea listed companies from 1991 to 2009 reveals that analysts` forecast accuracy decreases as the matching level decreases. As Dichev and Tang(2008) reported, the result implies the analysts encounter difficulties in performing earnings forecast because earning predictability drops when the matching does not properly incur. The results of this study provide empirical evidence that verifies that low matching levels can affect usefulness of accounting information negatively. Accordingly, a certain level of reporting guidelines with respect to the title of revenues and expenses need to be suggested, particularly for the moment when principles-based accounting standards are applied under K-IFRS. This study can provide significant implications that need to be addressed to achieve the purpose of accounting report at this time point when the new standards are applied due to the adoption of K-IFRS. Finally, developing a distinct proxy of matching level takings more valid and diverse approaches or comparison study between pre- and post- K-IFRS deserves further study.