기업의 현금보유와 회계정보의 질 간의 관계 (On the Relationship between Corporate Cash holding and Accounting Information Quality)

서지정보

· 발행기관 : 한국경영학회
· 수록지 정보 : 경영학연구 / 40권 / 2호 / 545 ~ 570페이지
· 저자명 : 김성신, 손판도

초록

This paper investigates the relation between financial reporting quality and corporate cash holdings on a sample of 6,832 firm-year observations between 1980 and 2008. Financial reporting quality has been posited to reduce asymmetric information, agency cost, and capital cost and in turn improve investment efficiency. As a result, firm with higher accrual quality(financial reporting quality) leads corporate manager to reduce corporate cash holdings.
Prior many papers have studied the determinants of cash holding motivation. However, the relationship between cash holdings and financial reporting quality was not investigated yet exception some abroad papers. Therefore, we have the motivation of investigating the relationship between the financial reporting quality and corporate cash holdings. Additionally, we examine the this relation under controlling for Chaebol-nonChaebol due to the characteristics of Korean firms.
In many studies of the relationship between the quality of accounting information and asymmetric information, the asymmetric information affects a cost of capital(Easely and O'Hara, 2004). The capital cost, in turn, is affected by the quality of accounting information quality proxied for accrual quality(Lambert et al., 2007).
Based on these results and evidences, finally as the quality of accounting information increases,the extent of the asymmetric information decreases and also the debt cost will be reduced (Bhattacharya et. al., 2003; Francis et. al., 2004). In addition, the quality of accounting information reduces the asymmetric information and also mitigates the conflict of agency problem between insider and outsider of firms. As a result, monitoring cost to watch managers will be down and finally makes rational decision making of new project in increasing the value of firm(Verdi, 2006).
Actually, information asymmetry and the conflict of agency make fund inflow from outside of firm difficult and in turn, they are main factors for increasing the cost of capital. Thus, firms have incentive in stocking the more liquidity asset to reduce the cost from outside financing.
As mentioned above results, we have the opportunity to investigate Korean firms whether there is this relation between the quality of accounting information and cash holdings of firm.
In this paper, we have portfolio approach and regression analysis method to identify this relation.
We use accrual quality as proxy for reporting quality and find whether there is consistent result with above papers. The evidences from this study are as follows: First, according to portfolio approach, small firm has lower accrual quality, implying poor accounting information quality, and also this evidence is consistent with what small firm has higher asymmetric information rather than large firm. Second, the accrual quality(inverse measure of AQDD)as proxy for accounting information quality affects significantly negative on cash holdings statistically, economically, and financially. Third, after separating before and after Korean Financial Crisis time, we find that the coefficient sensitive on change in accrual quality is more elasticity before Korean Financial Crisis rather than after Korean Financial Crisis. To check the robustness of these results, alternative accrual qualities are used and after all,these results are consistent and robust regardless of any alternative proxies and models.
Additionally, this paper investigates that our results are due to the characteristic factors of Chaebol-nonChaebol. As a result, this analysis finds that our results are also robust under controlling for the characteristic factors of Chaebol-nonChaebol. Therefore, the evidences of this paper provide the existence of the strong relation between the quality of accounting information and cash holdings of form.

영어초록

This paper investigates the relation between financial reporting quality and corporate cash holdings on a sample of 6,832 firm-year observations between 1980 and 2008. Financial reporting quality has been posited to reduce asymmetric information, agency cost, and capital cost and in turn improve investment efficiency. As a result, firm with higher accrual quality(financial reporting quality) leads corporate manager to reduce corporate cash holdings.
Prior many papers have studied the determinants of cash holding motivation. However, the relationship between cash holdings and financial reporting quality was not investigated yet exception some abroad papers. Therefore, we have the motivation of investigating the relationship between the financial reporting quality and corporate cash holdings. Additionally, we examine the this relation under controlling for Chaebol-nonChaebol due to the characteristics of Korean firms.
In many studies of the relationship between the quality of accounting information and asymmetric information, the asymmetric information affects a cost of capital(Easely and O'Hara, 2004). The capital cost, in turn, is affected by the quality of accounting information quality proxied for accrual quality(Lambert et al., 2007).
Based on these results and evidences, finally as the quality of accounting information increases,the extent of the asymmetric information decreases and also the debt cost will be reduced (Bhattacharya et. al., 2003; Francis et. al., 2004). In addition, the quality of accounting information reduces the asymmetric information and also mitigates the conflict of agency problem between insider and outsider of firms. As a result, monitoring cost to watch managers will be down and finally makes rational decision making of new project in increasing the value of firm(Verdi, 2006).
Actually, information asymmetry and the conflict of agency make fund inflow from outside of firm difficult and in turn, they are main factors for increasing the cost of capital. Thus, firms have incentive in stocking the more liquidity asset to reduce the cost from outside financing.
As mentioned above results, we have the opportunity to investigate Korean firms whether there is this relation between the quality of accounting information and cash holdings of firm.
In this paper, we have portfolio approach and regression analysis method to identify this relation.
We use accrual quality as proxy for reporting quality and find whether there is consistent result with above papers. The evidences from this study are as follows: First, according to portfolio approach, small firm has lower accrual quality, implying poor accounting information quality, and also this evidence is consistent with what small firm has higher asymmetric information rather than large firm. Second, the accrual quality(inverse measure of AQDD)as proxy for accounting information quality affects significantly negative on cash holdings statistically, economically, and financially. Third, after separating before and after Korean Financial Crisis time, we find that the coefficient sensitive on change in accrual quality is more elasticity before Korean Financial Crisis rather than after Korean Financial Crisis. To check the robustness of these results, alternative accrual qualities are used and after all,these results are consistent and robust regardless of any alternative proxies and models.
Additionally, this paper investigates that our results are due to the characteristic factors of Chaebol-nonChaebol. As a result, this analysis finds that our results are also robust under controlling for the characteristic factors of Chaebol-nonChaebol. Therefore, the evidences of this paper provide the existence of the strong relation between the quality of accounting information and cash holdings of form.

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