A Study of the Relation between Impairment of Long-Lived Assets and Stock Returns.
Date Issued
2004
Date
2004
Author(s)
Huang, Sheng-Kai
DOI
zh-TW
Abstract
This Study focuses on write-downs of long-lived assets of firms applying FASB SFAS No.121 and No.144. We implement regression analyses to find out relation between the impairment of long-lived assets and stock returns.
The empirical results find that :
(1)Including write-down amount in earnings results in a number that provides a better summary of the information that investors have used in setting stock prices(and therefore returns). However,
(2) There is not perfect alignment between the write-down amount and the change in stock price due to the decline in asset values; and the write-down amount is timely inasmuch as the decline in the asset value is recorded with a lag of “at least” one quarter.
Subjects
長期性資產價值減損
impairment
write-down
long-lived assets
Type
other
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