Abstract
The purpose of this paper is to empirically analyze how the main bank relations affect firms’ income-increasing earnings management. All listed non-financial companies in Korea from 2004 to 2011 are employed to analyze the research questions. The results showed a negative impact of main bank relations on income-increasing earnings management. In addition, second main bank relations have no significant impact on income-increasing earnings management. However, foreign bank relations as a main bank have some meaningful impacts on income-increasing earnings management. The results might indicate a strong monitoring of main bank as an important corporate governance on income-increasing earnings management.
| Translated title of the contribution | Main Bank Relationship and Firm's Income-Increasing Earnings Management |
|---|---|
| Original language | Korean |
| Pages (from-to) | 61-86 |
| Number of pages | 26 |
| Journal | 경제분석 |
| Volume | 23 |
| Issue number | 3 |
| DOIs | |
| State | Published - Sep 2017 |