Who classifies interest payments as financing activities An analysis of classification shifting in the statement of cash flows at the adoption of IFRS谁将利息支付归类为融资活动？采用国际财务报告准则时现金流量表分类变动分析.pdfVIP

J. Account. Public Policy xxx (2015) xxx–xxx Contents lists available at ScienceDirect J. Account. Public Policy journal homepage: /locate/jaccpubpol Who classifies interest payments as financing activities? An analysis of classification shifting in the statement of cash flows at the adoption of IFRS Bok Baik a, Hyunkwon Cho b, Wooseok Choi c,⇑, Kwangjin Lee d a Seoul National University Business School, 58-401, 1 Gwanak-ro, Gwanak-gu, Seoul 151-916, Republic of Korea b University of Houston, C.T. Bauer College of Business, 334 Melcher Hall, Houston, TX 77204, USA c Korea University Business School, 145 Anam-ro, Seongbuk-gu, Seoul 136-701, Republic of Korea d Michigan State University, Eli Broad College of Business, N270 Business College Complex, 632 Bogue Street, East Lansing, MI 48824, USA a b s t r a c t In this study, we examine a firm’s classification shifting behavior in the statement of cash flows under the IFRS regime. Specifically, we examine the determinants and economic consequences of classifi- cation shifting to manage operating cash flows. Based on a sample of firms that mandatorily adopt IFRS in Korea, the result shows that financially distressed firms, firms with high interest payments, firms with high bank ownership, and Chaebol affiliated firms tend to shift their interest payments from operating to financing