Korean Accounting Review (KAR) is the official journal of the Korean Accounting Association. The Korean Accounting Association (KAA) is the largest and oldest academic organization of accounting scholars and practitioners in Korea. It aims to create a fertile environment for innovation and collaborative research, to foster and improve research for the development and the promotion of accounting, and to develop a powerful network among scholars, practitioners, and authorities concerned with political decision making in this field.
A Study on the Effect of Political Ideology and Income Level on Taxpayer’s Perception of Exchange Equity 정치적 이념과 소득수준이 납세자의 교환 공평성 인식에 미치는 영향에 관한 연구
이영한 Young-han Lee , 이혜영 Hye-yeong Lee
DOI:10.24056/KAR.2023.08.001 KAR Vol.48(No.4) 1-36, 2023
This study analyzed how an individual’s political ideology and income class affect the perception of exchange equity for the tax system of their society using NaSTaB (National Survey of Tax and Benefit) database from 2017 to 2021. The main findings of the empirical analysis were as follows. First, political ideology was a significant determinant of tax exchange equity perceptions. Individuals with conservative views tended to perceive lower exchange equity in taxation, while those with liberal views tended to perceive higher exchange equity. Second, income class was also a significant factor of tax exchange equity perceptions. Individuals with high income tended to perceive lower exchange equity in taxation, while those with low income tended to perceive higher exchange equity. Third, the interaction between political ideology and income class was explored by dividing the respondents into nine groups based on these two factors. The results showed that the perception of exchange equity in taxation decreased as political conservatism and income level increased. However, an exception was found for the group with conservative views and low income, who perceived high exchange equity in taxation, and for the group with liberal views and high income, who perceived low exchange equity. These findings suggest that political ideology influences individuals’ perceptions of tax exchange equity, but economic interests based on income may override ideological preferences when they are in conflict.
교환 공평성, 정치이념, 소득수준, 보수주의, 진보주의, exchange equity in taxation, political ideology, income level, conservative, liberal
The Impact of Preliminary BTD on Audit fee and Audit Hours 회계이익과 과세소득 차이가 감사보수 및 감사시간에 미치는 영향: 잠정 BTD를 중심으로
김승준 Seung Jun Kim , 박성종 Sung Jong Park , 이효진 Hyo-jin Lee
DOI:10.24056/KAR.2023.08.002 KAR Vol.48(No.4) 37-69, 2023
This study aims to examine the impact of preliminary BTD on audit risk. The preliminary BTD calculated through preliminary results is an accounting figure calculated internally by the company before being audited, so it reflects the discretion of management, and there is an incentive to disclose too much (or too little). Audit fees and audit time are one of the factors that determine an auditor’s audit quality. They are likely to assign experienced auditors to audit high-risk companies, and this is likely to be accompanied by high audit fees. We would like to conduct an empirical analysis on whether the preliminary BTD increases audit fees and audit time as audit risks. In this study, we calculated the preliminary BTD for companies that announced provisional results from 2012 to 2019, and conducted research on a total of 6,955 samples. The results of the empirical analysis are as follows. After controlling for the total accrual amount, the higher the preliminary BTD, the higher the audit fee and audit time for the current and next period. This study is a consistent empirical result with mixed results of domestic and foreign previous studies in that it is a variable that can predict the discretionary decision-making intentions of managers in advance by using provisional public disclosure materials. is significant in that it can provide policy suggestions to stockholders.
The Impact of Material Facts on Management Discussion and Analysis(MD&A) Disclosure 기업에 발생한 중요사건이 경영진단의견서(MD&A)에 미치는 영향
한만조 Man Jo Han , 조현권 Hyunkwon Cho
DOI:10.24056/KAR.2023.08.003 KAR Vol.48(No.4) 71-96, 2023
The MD&A disclosures provide managers’ interpretation of a firms’ business that is necessary to predict the company’s future business. Due to its semi-voluntary nature, the importance of MD&A disclosures is significant. However, previous studies and data released by the Financial Supervisory Service show that firms do not provide useful information through MD&A disclosures. To better understand the usefulness of MD&A disclosures, this study adopts MD&A sentence similarity and tests whether the similarity changes when firms report material facts. In this study, we use the disclosure following Article 161 of the Capital Markets Act as a proxy for material facts. If MD&A sentences for current year differ from the previous year, sentence similarity will decrease. We find that the sentence similarity is significantly negative when firms report material facts and as the number of material facts increase, the similarity decreases, indicating that managers reflect different sentences from the previous year in MD&A. We also find that the number of sentences and words increases when material facts are reported. Furthermore, the incremental words was related to the contents of material facts. This suggests that MD&A includes significant events in a company and is a useful means of disclosure.
경영진단의견서, 공시, 텍스트 분석, 주요사항보고서, MD&A disclosure, textual analysis, material facts
Do Periodically Designated Auditors Increase the Actual Audit Hours Relative to Standard Audit Hours? Focusing on Comparison with Freely Changed Auditors 주기적 지정감사인이 표준 대비 실제감사시간을 보다 증가시키는가? 자율 교체 감사인과 비교를 중심으로
박종일 Jong Il Park , 정선문 Sun Moon Jung , 이윤정 Yun Jeong Lee
DOI:10.24056/KAR.2023.08.004 KAR Vol.48(No.4) 97-143, 2023
This study aims to investigate whether periodically designated auditors, using the standard audit hours disclosed in annual reports since 2020, spend more actual audit hours (i.e., the difference between actual and standard audit hours) than freely changed auditors. Using data on periodically designated auditors as of 2020, the study analyzes initial and second-year audits and finds that: first, there is no evidence that periodically designated auditors spend more actual audit hours than freely changed auditors in either the initial or second-year audits, as shown by consistent results using the difference-in-differences method; second, abnormally high audit fees paid to periodically designated auditors are not a significant moderating factor in increasing actual audit hours compared to standard audit hours; and third, additional analysis using the growth rate of audit hours as the dependent variable shows that the audit hours of periodically designated auditors increases during the initial audit but decreases during the second-year audit compared to freely changed auditors. In summary, this study provides empirical evidence that periodically designated auditors do not make greater efforts to conduct more rigorous audits with higher actual audit hours or audit hours growth than freely changed auditors during initial or second-year audits. These findings are relevant to recent social conflicts and controversies between corporations and audit industries regarding the cost-effectiveness of the periodic designation system, as well as the increasing interest of regulators and academics in this issue.
실제-표준감사시간의 차이, 감사시간의 증감율, 표준감사시간, 감사노력, 감사품질, 비정상 감사보수, actual-standard differences in audit hours, standard audit hours, the growth rate of audit hours, audit effort, audit quality, abnormal audit fees
The Effects of Financial Stability of a Technology-Based IPO Firms on the Stock Price Crash Risk 재무건전성이 기술특례상장기업의 주가폭락위험에 미치는 영향
홍희정 Hee-jung Hong , 박선영 Sun-young Park
DOI:10.24056/KAR.2023.08.005 KAR Vol.48(No.4) 145-178, 2023
This study examines the effect of investor information asymmetry on the stock price crash risk of technology-based IPO firms and analyzes whether the financial stability index can reduce the stock price crash risk of technology-based IPO firms. The results of the study are as follows: First, this study examines technology-based IPO firms have a positive(+) effect on stock price crash risk. Second, we find that the interaction variable of financial stability and technology-based IPO firms have a significant positive(+) effect on stock price crash risk. Third, this study investigates the effect of the interaction variable on the future stock price crash risk is highest in the highest stock price crash risk group. Finally, this study confirms similar results in the additional analysis using PSM. These results mean that technology-based IPO firms with high information asymmetry and financial uncertainty increase the stock price crash risk. Also, this finding suggests when investors invest in technology-based IPO firms, they consider the unique technical factors of firms rather than the financial stability. The results of this study provide implications that government agencies should prepare stable investment policies for technology-based IPO firms, and companies should establish long-term management strategies to enhance financial stability.