원문정보
Stock Price Relevance of other comprehensive income under IFRS
초록
영어
Due to financial globalization and convergence of financial regimes, the International Accounting Standards Board (IASB) is enhancing international comparability of accounting information by improving usability has been implementing the International Financial Reporting Standards (IFRS). In addition, the IASB has been trying to improve the timeliness and usefulness of the information evaluating assets and liabilities by introducing the concept of current value. With the IFRS fully implemented in 2011, it is expected to greatly affect other comprehensive income. Some equity items such as revaluation surplus of tangible and intangible assets, actuarial incomes from defined benefit obligation and plan assets have been included in the other comprehensive income of financial statements following the adoption of IFRS. Those items are transitory which means their values are susceptible to price changes. When the price of those items fluctuates, ROE (Return On Equity) will decrease comparably to the diluted effect of potential ordinary shares in computing diluted EPS(Earnings Per Share). This study tests whether the value relevance of other comprehensive income has decreased in the era of IFRS due to the inclusion of some transitory items. Our sample is KOSPI listed companies (except financial institutes) under K-GAAP in 2010 and that of companies adopting IFRS early in 2009 and 2010. We compare the value relevance of KOSPI-listed companies under K-GAAP in 2010 to companies adopting IFRS in early 2009 and 2010. Furthermore, we also tested the difference of value relevance pre-IFRS and post-IFRS sampling companies that adopted IFRS in 2009 and 2010. For additional testing, ROE was divided into two groups. One is ROE without other comprehensive income’ influence and the other is ROE influenced by other comprehensive income. The results suggest that value relevance of ROE under K-GAAP existed but decreased significantly under K-IFRS. Moreover, value relevance of ROE influenced by other comprehensive income was lower for K-IFRS than under K-GAAP. This implies investors will place lower value on IFRS adopted companies for the other comprehensive income. We also introduced the EPS dilution effect for the other comprehensive income of financial statements following the adoption of IFRS. This study contributes to future studies by showing that when including income from transitory items in other comprehensive income are not favorable methods with regard to value relevance. As a result, IFRS adoption can cause a decrease of value relevance. However, these results are for companies that voluntarily adopted IFRS, so it is not conclusive to make a generalization. Also, our sample is only for the pre-IFRS period, we therefore can not generalize the research results. For additional study, we have to expand the research for post-IFRS period using sufficient sample and data.
목차
Ⅱ. 국제회계기준에 따른 기타포괄손익
Ⅲ. 선행연구
Ⅳ. 연구가설과 연구모형
Ⅴ. 실증분석 결과
Ⅵ. 결론
참고문헌
Abstract