Mandatory Adoption Of IFRS And Earnings Transparency In Korea

We investigate the relation between mandatory adoption of IFRS (International Financial Reporting Standards) and earnings transparency in Korea. We define transparency of earnings as how well it explains a firm value. Financial reporting mitigates information risks of the firm by lessening information asymmetry between insiders and outsiders of a firm. If accounting information produced after adopting IFRS better explains a firm value, then, it will reduce information asymmetry and information risks of the firm, resulting in enhancement of earnings transparency. We measure earnings transparency based on Barth, Konchitchki, and Landsman et al. (2013) and Cheng and Subramanyam (2008).   The sample is 2,276 which are listed on Korea stock exchange over 2008-2014. The empirical result shows adopting IFRS is significantly positive with earnings transparency, which means it mitigates information asymmetry, enhancing earnings transparency in Korea. Our study is distinguished from prior studies because we empirically examine influence of adopting IFRS on earnings transparency of Korea. Our result implies adopting IFRS contributes to higher earnings transparency which helps market participants make decisions

The Effect Of Accruals Quality On The Association Between Voluntary Disclosure And Information Asymmetry In Korea

Using data on the firms' voluntary disclosures from the Korea Stock Exchange from 2011 to 2014, we first empirically examine the association between voluntary disclosure and information asymmetry and then investigate the extent to which this association is affected by accruals quality since Korea adopted International Financial Reporting Standards (IFRS) in 2011.   We use Comprix et al. (2011) and Shin and Park (2014)'s measures of information asymmetry. They are daily stock return volatility (VOLA) and trading volume turnover (VOL). We use the Dechow et al.'s (1995) revised Jones model and the Kothari et al.'s (2005) performance matched discretionary accrual model to measure the discretionary accruals. The absolute values of discretionay accruals are used as proxies for accruals quality. Final research samples with voluntary disclosure for this study are 1,226 (firms-years) companies. The research findings generally support our hypotheses. First, the relation between voluntary disclosure and information asymmetry is statistically and significantly positive as we have expected. The Korean companies with high voluntary disclosure would experience higher daily stock return volatility and less trading volume, which implies that companies tend to disclose biased information to the outside, which is consistent with prior studies in Korea. Second, the accruals quality (moderating variable) on the relation between voluntary disclosure and information asymmetry is statistically and significantly negative. Thus, we can conclude that when accruals quality is high, more voluntary disclosure decreases information asymmetry. These findings imply that accruals quality works as a mechanism in reducing the negative effect of voluntary disclosure on information asymmetry after the adoption of IFRS in Korea. The limitation of this study is such that we might not have considered other omitted variables and other proxies for the accruals quality, voluntary disclosure, and information asymmetry

Effects Of Voluntary Disclosure Of The Schedule Of Manufacturing Cost On Analysts’ Earnings Forecasts: Evidence From Korea

We provide the effects of voluntary disclosure of the schedule of manufacturing cost on analysts’ earnings forecasts. We set up and analyze the disclosure of the schedule of manufacturing cost as a proxy for voluntary disclosure. Specifically, we examine the associations between voluntary disclosure of it and the accuracy of analysts’ earnings forecasts and bias in earnings forecasts. The results of our study are as follows. First, the relationship between voluntary disclosure of the schedule of manufacturing cost and the accuracy of analysts’ earnings forecasts is significant in the positive (+) direction. This means that the accuracy of analysts’ earnings forecasts is higher in the case of the firms that voluntarily disclosed the schedule of manufacturing cost, as compared to other firms. Second, the relationship between voluntary disclosure of the schedule of manufacturing cost and analysts’ bias in earnings forecasts is significant in the negative (-) direction. This means that analysts underestimate earnings in the case of the firms that voluntarily disclose the schedule of manufacturing cost, as compared to other firms. Since the schedule of manufacturing cost is still an interesting item and useful information in the capital market, the results of our study provide important implications not only to managers, but also to investors and supervisory authority. Limitations of our study include the fact that not all diverse variables that affect voluntary disclosure and analysts’ forecasts are considered.

Effect Of Corporate Governance On The Association Between Book-Tax Differences And Audit Quality: Evidence From Korea

We investigate whether auditors input additional audit hours according to the sizes of book-tax differences (hereinafter BTD) and request additional audit fees for additional audit hours. In addition, the interaction effects of corporate governance on the relationships between BTD and audit hours/audit fees are examined using the total corporate governance (TCG) scores, data from the Korea Corporate Governance Service (KCGS). We predict that since auditors have the incentive and ability to consider BTD, audit hours and audit fees will increase when BTD are larger. Empirical results of our study are as follows. First, BTD and audit hours (LnAH) show a negative (-) association that is not statistically significant. Second, audit fees (LnAF) were shown to increase along with BTD. This can be interpreted as a result of requests for additional audit fees for increased audit risks due to individual firms' BTD. Third, the interaction effect of corporate governance on the relationship between BTD and audit hours (LnAH) showed a positive (+) association, but the association was not statistically significant. Fourth, the interaction effect of corporate governance on the relationship between BTD and audit fees (LnAF) showed a statistically significant positive (+) association. This be understood as meaning that firms with better governance make more efforts for financial reporting in order to maintain their reliability in the market. This study contributes to the literature in several important aspects. First, it empirically demonstrates whether auditors properly reflect BTD on audit risks. Next, our study is analyzes the effects of corporate governance on the relationship between BTD and audit hours/audit fees using the total corporate governance (TCG) scores presented by the Korea Corporate Governance Service (KCGS). Finally, our findings empirically showed social proof function of accounting audits as a strategy to reduce information risks.

Osseointegration of Implants Surface-Treated with Various Diameters of TiO 2

The aim of this study was to evaluate the osseointegration of implants which were surface-treated with various diameters of TiO2 nanotubes (30 nm, 70 nm, and 100 nm) in rabbit. Resorbable blast media (RBM) surfaced implants (Osstem, Busan, Korea) 3.5 mm in diameter and 8.5 mm in length were designated as the control group and the implants surface-treated with various diameters of nanotubes (30 nm, 70 nm, and 100 nm) with the same shapes were designated as the experimental groups. The implants were maintained unloaded for 4 and 12 weeks. After this period, the animals were sacrificed and micro-CT analysis, histomorphometric analysis (bone to implant contact (BIC), bone volume (BV)), and removal torque test were performed. Micro-CT analysis, histomorphometric analysis, and removal torque test results all showed the similar pattern, showing that 70 nm experimental group had the highest value at 4 weeks while 30 nm experimental group had the highest value at 12 weeks. Therefore, on the basis of the results above, it can be concluded that 30 nm and 70 nm TiO2 nanotubes may have positive effects on osteogenesis and osseointegration depending on the healing time

The Evaluation of Osseointegration of Dental Implant Surface with Different Size of TiO 2

With the development of nanotechnology, many researches have shown that nanometer-scaled materials especially TiO2 nanotube have a positive effect on cellular behavior and surface characteristics of implant, which are considered to be crucial factors in osseointegration. However, it has not yet been verified which nanotube size is effective in osseointegration in vivo. The aim of this study was to evaluate the effect of implant surface-treated with different size of TiO2 nanotubes on osseointegration in rat femur. The customized implants (threaded and nonthreaded type), surface-treated with different diameter of TiO2 nanotubes (30 nm, 50 nm, 70 nm, and 100 nm nanotube), were placed on both sides of the femur of 50 male Sprague-Dawley rats (6 weeks old). Rats were sacrificed at 2 and 6 weeks following surgery; then the specimens were collected by perfusion fixation and the osseointegration of implants was evaluated by radiographic and histologic analyses and removal torque value test. The mean of bone area (%) and the mean of removal torque were different in each group, indicating that the difference in TiO2 nanotube size may influence new bone formation and osseointegration in rats

Unveiling the key factor for the phase reconstruction and exsolved metallic particle distribution in perovskites

To significantly increase the amount of exsolved particles, the complete phase reconstruction from simple perovskite to Ruddlesden-Popper (R-P) perovskite is greatly desirable. However, a comprehensive understanding of key parameters affecting the phase reconstruction to R-P perovskite is still unexplored. Herein, we propose the Gibbs free energy for oxygen vacancy formation in Pr-0.5(Ba/Sr)(0.5)TO3-delta (T = Mn, Fe, Co, and Ni) as the important factor in determining the type of phase reconstruction. Furthermore, using in-situ temperature & environment-controlled X-ray diffraction measurements, we report the phase diagram and optimum 'x' range required for the complete phase reconstruction to R-P perovskite in Pr0.5Ba0.5-xSrxFeO3-delta system. Among the Pr0.5Ba0.5-xSrxFeO3-delta, (Pr0.5Ba0.2Sr0.3)(2)FeO4+delta - Fe metal demonstrates the smallest size of exsolved Fe metal particles when the phase reconstruction occurs under reducing condition. The exsolved nano-Fe metal particles exhibit high particle density and are well-distributed on the perovskite surface, showing great catalytic activity in fuel cell and syngas production. The complete phase reconstruction to Ruddlesden-Popper perovskite is greatly desirable to increase the exsolved particle distribution. Here, the authors report a key factor for the complete phase reconstruction in perovskites, leading to good catalytic activity in fuel cell and syngas production