세무와회계저널 | The Informativeness of Consolidated Financial Statements －From the Per…
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08-최연식 정형록 박진하(영문)(221~253).pdf
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DATE : 2012-04-20 14:19:31
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| 발행일 : 2012년 3월 31일 |
| 제 13권 1호 |
| 저자 : 최연식/정형록/박진하 |
Starting in 2011, Korean companies should present IFRS－compliant financial statements. As
one of the requirements, a parent company needs to issue consolidated financial statements as the
primary financial statements. Since current Korean GAAP requires non－consolidated financial
statements as the primary financial statements, various stakeholders in Korea are not accustomed
to consolidated financial statements.
The purpose of this paper is to identify differences in the economic meaning and the
informativeness between these two types of financial statements. We use financial data from 2004
to 2008 with more reliability after the post－audit review process of FSS. We find that there
exist differences in key financial information between consolidated financial statements and nonconsolidated
financial statements. In addition, the value－relevance of both book value and
earnings are not significantly different between them. Finally, we find that market additionally
responds to the announcement of consolidated financial statements. Specifically, there is
significant return－earnings relation for consolidated earnings even after controlling the impact of
non－consolidated earnings, and the average trade volume around the announcement of
consolidated earnings date is greater than that in the non－report period.
This paper may provide guidelines for disentangling differences in financial information
between non－consolidated and consolidated financial statements and evaluating the economic
substance of a firm on the basis of consolidated financial statements. In addition, this paper may
empirically support the adoption of K－IFRS by showing that consolidated financial statements
are significantly utilized for investor’s decision－making of short－term as well as of long－term.
one of the requirements, a parent company needs to issue consolidated financial statements as the
primary financial statements. Since current Korean GAAP requires non－consolidated financial
statements as the primary financial statements, various stakeholders in Korea are not accustomed
to consolidated financial statements.
The purpose of this paper is to identify differences in the economic meaning and the
informativeness between these two types of financial statements. We use financial data from 2004
to 2008 with more reliability after the post－audit review process of FSS. We find that there
exist differences in key financial information between consolidated financial statements and nonconsolidated
financial statements. In addition, the value－relevance of both book value and
earnings are not significantly different between them. Finally, we find that market additionally
responds to the announcement of consolidated financial statements. Specifically, there is
significant return－earnings relation for consolidated earnings even after controlling the impact of
non－consolidated earnings, and the average trade volume around the announcement of
consolidated earnings date is greater than that in the non－report period.
This paper may provide guidelines for disentangling differences in financial information
between non－consolidated and consolidated financial statements and evaluating the economic
substance of a firm on the basis of consolidated financial statements. In addition, this paper may
empirically support the adoption of K－IFRS by showing that consolidated financial statements
are significantly utilized for investor’s decision－making of short－term as well as of long－term.
