A Study on Earnings Management of Zero-leverage Firms from the Perspective of Financial Constraints
DC Field | Value | Language |
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dc.contributor.author | 이현아 | - |
dc.date.accessioned | 2022-03-27T06:40:08Z | - |
dc.date.available | 2022-03-27T06:40:08Z | - |
dc.date.created | 2022-03-16 | - |
dc.date.issued | 2022-02 | - |
dc.identifier.issn | 1088-6931 | - |
dc.identifier.uri | https://scholarworks.bwise.kr/gachon/handle/2020.sw.gachon/83802 | - |
dc.description.abstract | Purpose: This study verifies the debt covenant hypothesis by exploring the earnings management of zero-leverage firms that are not constrained by debt covenants. Furthermore, this study investigates whether the earnings management of zero-leverage firms varies depending on financial constraints, whether a consecutive zero-leverage period is associated with the level of earnings management, and whether this association varies depending on financial constraints. Design/methodology/approach: Using a sample of 5,669 firm-year data of listed firms in the securities market in South Korea from 2011 to 2019, this study conducts multiple regression analysis to examine the earnings management of zero-leverage firms from the perspective of financial constraints. In the analysis, two types of earnings management behaviors (i.e., accrual-based and real activities earnings management) are considered. Findings: The findings of this study show that zero-leverage firms are less likely to manage earnings than leveraged firms. Moreover, the longer the zero-leverage period, the lower the level of earnings management. However, these findings disappear when the analysis is conducted for firms with financial constraints. They indicate that a zero-leverage policy or a consecutive zero-leverage period is related to earnings management and that this relation varies depending on financial constraints. Research limitations/implications: This study provides insight into the attributes of zero-leverage firms by analyzing their earnings management. The findings of this study provide compelling evidence that zero-leverage firms are not homogeneous and are significantly distinct according to their status with or without financial constraints. Originality/value: This is the first study to test the debt covenant hypothesis by investigating the earnings management of zero-leverage firms. This study also extends the literature by examining the financing decisions that maintain zero leverage for a long period. | - |
dc.language | 영어 | - |
dc.language.iso | en | - |
dc.publisher | 사람과세계경영학회 | - |
dc.relation.isPartOf | Global Business and Finance Review | - |
dc.title | A Study on Earnings Management of Zero-leverage Firms from the Perspective of Financial Constraints | - |
dc.type | Article | - |
dc.type.rims | ART | - |
dc.description.journalClass | 1 | - |
dc.identifier.doi | 10.17549/gbfr.2022.27.1.28 | - |
dc.identifier.bibliographicCitation | Global Business and Finance Review, v.27, no.1, pp.28 - 49 | - |
dc.identifier.kciid | ART002818657 | - |
dc.description.isOpenAccess | N | - |
dc.identifier.scopusid | 2-s2.0-85126612030 | - |
dc.citation.endPage | 49 | - |
dc.citation.startPage | 28 | - |
dc.citation.title | Global Business and Finance Review | - |
dc.citation.volume | 27 | - |
dc.citation.number | 1 | - |
dc.contributor.affiliatedAuthor | 이현아 | - |
dc.subject.keywordAuthor | Zero-leverage | - |
dc.subject.keywordAuthor | Leverage | - |
dc.subject.keywordAuthor | Financial constraints | - |
dc.subject.keywordAuthor | Debt covenants | - |
dc.subject.keywordAuthor | Earnings management | - |
dc.description.journalRegisteredClass | scopus | - |
dc.description.journalRegisteredClass | kci | - |
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