기업수명주기와 실제이익조정

초록

This paper investigates how real earnings management is different depending on firm's life cycle, and analyzes which method is used to boost earnings. The empirical results indicate that firms in decline stage engage in real earnings management to increase earnings while firms in introduction stage report lower earnings due to expanded investment. In detail, a firm‘s manager in decline stage tends to perform real earnings management through reducing discretional expense, and increasing production volume, and at the same time to manipulate earnings using discretionary accruals. Especially, firms in decline stage cut R&D expenditure and advertising expense to increase earnings while firms in introduction stage increase in spending R&D and advertising expense. This paper contributes to the accounting literature by providing evidence on real earnings management depending on corporate life cycle. By undertaking a comprehensive examination on corporate life cycle and real earnings management, this paper contributes to assess firm's strategic reporting behavior and further it will be useful to market participants to make better decisions.

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