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잉여현금흐름과 이익의 질에 관한 연구 : The Effect of Earnings Quality using the Free Cash Flow Concept

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Authors
이재관심동석이창우
Issue Date
2004-03
Publisher
서울대학교 경영대학 경영연구소
Citation
경영논집, Vol.38 No.1, pp. 1-35
Keywords
earnings qualityfree cash flowearnings coefficient
Abstract
The purpose of this study is to investigate the effect of the earnings quality on the stock

prices. While previous studies have used the concept of Cash Flow from operations, this

study is using the free cash flow concept instead. The free cash flow concept used in this

study is derived by deducting additional investment in operations from cash flow from

operations.

The results indicate that when we used the free cash flow concept in determining earnings

quality, there is significant difference in the earnings coefficients of group 1 and 2, where the

group 1 is the group of firms with high earnings quality and the group 2 is the group of firms

with low earnings quality. However, when we used cash flow from operations, we do not

observe any significant difference between the two groups. This finding is quite interesting

because while previous studies indicate that the earnings quality concept is valid with respect

to the cash flow from operations, this study does not, indicating that investors use the concept of free cash flow in evaluating firm value.
ISSN
1229-0491
Language
Korean
URI
https://hdl.handle.net/10371/43668
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College of Business Administration/Business School (경영대학/대학원)Institute of Management Research (경영연구소)경영논집경영논집 vol.38 (2004)
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