코스닥 등록 및 공개 기업의 경영자지분과 이익조정

초록

This study examines the non-linear relationship between the managerial ownership and the earnings management induced by manager's opportunistic behavior in the KOSDAQ market. Furthermore, it investigates increasing linear relationship between high density interval of the managerial ownership and the earnings management in the IPO(initial public offering) market. The two hypotheses, such as the convergence of interest hypothesis and the entrenchment hypothesis, have been in confrontation with each other in relation to the association between managerial ownership and managers' opportunistic behavior. By the way, Morck et al.(1998) showed empirically that high managerial ownership induced high opportunistic behavior in the intermediate interval of managerial ownership, and, inversely, increasing managerial ownership weakened opportunistic behavior in very high or very low interval of managerial ownership. After that, Teshima and Shuto(2008) suggests the theoretical model, which explains non-linear association between the managerial ownership and the earnings management caused by manager's opportunistic behavior. The model emphasizes that managers' opportunistic behavior is weakened if managers' ownership increases sufficiently because managers' high ownership diminish the risk of dismissal and the failure of renewal. First, we aim to investigate whether the non-linear relationship between the managerial ownership and the earnings management exists in domestic capital markets. After that, we examine that the linear relationship between the managerial ownership and the earnings management appears in pre-IPO period, when the motive of opportunistic behavior of ownership managers might be strengthened. The empirical results are as follows, First, it shows that there is "reversed-U” shape relation between the managerial ownership and the discretionary accrual being proxy for managers' opportunistic behavior. Second, it shows the increasing linear relationship between the managerial ownership and the earnings management in pre-IPO period as high density of ownership induces high value of discretionary accrual. This paper contributes to the accounting literature by providing eclectic evidence on the convergence of interest hypothesis and the entrenchment hypothesis in domestic capital market. Furthermore, it provides the evidence that the entrenchment hypothesis is in operation in IPO market in which managers can pursue the opportunistic behavior easily. In other words, it suggests an empirical evidence that ownership managers can take advantage of IPO to seek private interest in KOSAQ market.

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