The Effects of Long-term Orientation on Financial Performance and Earnings Quality: Evidence from Korea
- 주제(키워드) Long-Term Orientation , Financial Performance , Earnings Quality , 장기지향주의 , 재무성과 , 이익조정
- 주제(기타) 경영학
- 설명문(URI) https://www.kci.go.kr/kciportal/ci/sereArticleSearch/ciSereArtiView.kci?sereArticleSearchBean.artiId=ART001992859
- 등재 KCI등재
- 발행기관 대한경영학회
- 발행년도 2015
- URI http://www.dcollection.net/handler/ewha/000000238637
- 본문언어 영어
초록/요약
This paper aims to identify the effects of corporate long-term orientation on financial performance and earnings quality. Long-term orientation is proxied by R&D intensity, capital expenditures intensity, variability in workforce, and an indicator for owner-managed large firms. Using the samples of 11,281 firm-year observations from the Korea Stock Exchange between 2005 and 2014, we find evidence that long-term orientation is positively associated with medium-term financial performance, which is measured by three-year average return on assets (ROA). Also, we find that long-term orientation is negatively related to discretionary accruals and financial opacity (three-year sum of absolute discretionary accruals). The findings of this paper contribute to long-term orientation literature, which is a relatively unexplored topic in South Korea.
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