earticle

영어

The purposes of this paper are to investigate the relative value relevance of equity book value and accounting income components in the era of economic crisis. The paper examines the relative value relevance of book value of equity, accounting earnings, cash flow from operations and accruals over the period from 1992 through 2008 as a way to compare of the effect of economic crisis on the value relevance of accounting information. We compare the valuation coefficients of book value, accounting earnings, cash flow from operations and accruals between the era of economic crisis I (1992~1996), and the era of economic crisis Ⅱ(2003~2008). We explicitly examines the differences in the valuations coefficients on each accounting variable among the pre and peak periods of economic crises. As the financial health of a firm goes down, Barth et al. (1998) argues, equity book value (which reflects liquidation value) dominate a firm's net income (which reflects unrecognized net asset valuation). Hence, the value relevance of net income decreases and that of equity book value increases as the financial health of a firm deteriorates. Macro economic crisis deteriorates individual firms’ profitability,makes it difficult to finance, and may result in bankrupt. Korea and other major Asian nations had experiences of economic crisis caused by domestic shortage of foreign currency during 1997~1998. The world also has experienced of global economic crisis triggered by a rise in mortgage delinquencies and foreclosures in 2008/2009 in United States. Davis-Friday et al. (2006) finds that there is no significant changes in the value relevance of accounting information in Korea during the Asian economic crisis (1997~1998). However, Ho et al. (2001) reports contradicting results such that both net income and equity book value lose their significance during the crisis. First, the study compares the relative value relevance of equity book and net income between the era of economic crisis I (the IMF Foreign Currency Crisis), and the era of economic crisis Ⅱ (the global economic crisis). Our findings show that the valuation coefficient on book value decreases significantly during the economic crisis I, while the valuation coefficients on earnings does not change. On the contrary, during the economic crisis Ⅱ (the global economic crisis) the valuation coefficient of net income decreases significantly but that of equity book value increases. The results are different from those during the former Foreign Currency crisis but are consistent with the assertion of Barth et al. (1998). We also compares the relative value relevance of net income components, i.e., cash flow from operations and accruals between the era of economic crisis I (the IMF Foreign Currency Crisis), and the era of economic crisis Ⅱ (the global economic crisis). Our results show that the valuation coefficient on cash flow from operations increases significantly during the economic crisis I, while the valuation coefficients on accruals does not change. On the contrary, during the economic crisis Ⅱ both the valuation coefficient of cash flow from operations and accruals decrease significantly but that of equity book value increases. In the case of negative net income it loses its value relevance during the IMF Foreign Currency Crisis, but does not lose its value relevance during the global economic crisis, for changes of accruals value relevance. Subsequent to the IMF Foreign Currency Crisis, there are significant institutional changes in accounting and economic environment with a view to enhance the with a view to enhance firms’ transparency in Korea (firms’ governance structure with an audit committee and independent outside directors,removing the restrictions for the foreign investment). Certainly, these accounting environments may change the value relevance of accounting information during the economic crisis. But, the characters of economic crises also seem to change the value relevance of accounting information. The path of economic environment changes to the value relevance of accounting information will be next analysis.

한국어

경제위기 기간 동안 기업 가치의 가치관련성을 1997/8년 외환위기와 2008년에 시작된 글로벌경제위기의 시기를 비교한 연구결과, 경제위기 I(외환위기) 기간에서는 순이익의 가치관련성은 중요한 변화가없었으나 순자산의 가치관련성은 유의하게 하락했다. 경제위기 Ⅱ(글로벌 경제위기) 기간에서는 순이익의 가치관련성이 유의하게 하락하고, 순자산의 가치관련성은 증가하여 대조적인 양상을 보였다. 한편, 순이익변수를 발생액과 영업현금흐름으로 분리하여 분석한 결과는 경제위기 I 기간에서는 발생액의가치관련성은 중요한 변화가 없었으나 영업현금흐름의 가치관련성은 유의하게 상승하고 순자산의 가치관련성은 유의하게 하락했다. 경제위기 Ⅱ 기간에서는 발생액과 영업현금흐름의의 가치관련성이 유의하게 하락하고, 순자산의 가치관련성은 증가하여 대조적인 양상을 보였다. 특기할 점은 음(-)의 이익의 경우 가치관련성이 경제위기 I 기간에서는 하락하고 경제위기 Ⅱ(글로벌 경제위기) 기간에서는 상승한 주요 요인이 현금흐름보다는 발생액의 가치관련성 변화에 기인한다는 것이다. 경제위기 I 기간과 경제위기 Ⅱ 기간에 회계정보의 가치관련성이 대조적으로 나타난 것은 회계환경 변화와경제위기의 성격차이가 영향을 미친 결과로, 본 연구는 회계환경 변화의 효과에 더하여 거시경제변수가 회계정보의 가치관련성에 영향을 미칠 수 있음을 나타낸 것에 의의가 있다. 거시경제 환경의 변화가 회계정보의 가치관련성에 영향을 미치는 기제에 대한 구체적 분석은 차후의 과제가될 것이다.