희석효과의 측정치와 이익반응계수

초록

Dilutive securities such as convertible bonds and bonds with warrants can potentially reduce earnings per share by increasing the number of common shares outstanding. The purpose of reporting diluted EPS is to communicate potential dilution effects of dilutive securities. However, current diluted EPS may not capture the full effects of dilutive securities. The diluted EPS is only recognized on the financial statements when dilution lowers EPS, but investors will incorporate dilution effects when stock price is higher than exercise price of dilutive securities. On the other hand, there have been empirical results that dilutive securities contain future earnings growth potentials rather than earnings dilution. This study examines whether dilutive securities contain an information of EPS dilution or future earnings growth. If dilutive securities contain an information that future earnings per share is to be reduced, dilution effects will lower earnings response coefficients. Since diluted EPS reported on the income statements may not capture the full effects of dilutive securities, this study uses two measures of dilution effects. One is diluted EPS based measure and the other is share based measure. To test the effects of dilutive securities on the earnings response coefficients, this study uses the sample which consists of manufacturing firms listed on Korean Stock Exchange during 1999-2007. The results are as follows:The share based measure reduces earnings response coefficients, but, the dilution effects extracted from diluted EPS are not related to earnings response coefficients. This results indicate that dilutive securities contain an information of EPS dilution rather than future earnings growth potential and diluted EPS reported on the income statements does not fully convey the dilution information of dilutive securities in the capital market. These results may be helpful for accounting regulators to set and revise accounting standards about additional disclosure of share based dilution measure.

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