The Research of Association between Corporate Governance and Asset Impairment
Date Issued
2007
Date
2007
Author(s)
Lai, Shu-Ting
Abstract
The research focuses on the association between corporate governance and asset impairment. The sample period is from year 2004 to year 2005. The analysis methods adopted in the research are Logit Model and OLS Model. Empirical results suggest what mentioned below.
First, it is focused that the association between corporate governance and the probability of whether asset impairment is recognized or not. The result is that the management level replaced, the more deviation between final controlling holder’s controlling right and cash flow right, the less ratio of independent director number, and the less director’s effective holding rate, the more probability of asset impairment recognized. Above-mentioned implied that the less corporate governance mechanism, the more probability of asset impairment loss recognized.
In addition, it is focused that the association between corporate governance and the probability of whether asset impairment is recognized in advance or not. The result is that the management level replaced, the more foreign investor’s holding rate, the more deviation between final controlling holders’ controlling right and cash flow right, the less ratio of independent director number, and the less directors’ effective holding rate, the more probability of asset impairment recognized in advance. Above-mentioned implied that the less corporate governance mechanism, the more probability of asset impairment loss recognized in advance.
Besides, it is focused that the association between corporate governance and the amount of asset impairment recognized. The result is that the management level replaced, the more deviation between final controlling holder’s controlling right and cash flow right, and the less ratio of independent director number, the more asset impairment is recognized. Above-mentioned implied the less corporate governance mechanism, the more asset impairment loss recognized.
Finally, focusing on the association between corporate governance and the amount of asset impairment whether is recognized in advance or not. The result is that the asset impairment loss recognized on time in 2005 is affected more by corporate governance variables than which recognized in 2004.
Subjects
公司治理
資產減損
盈餘管理
35號公報
提前適用
corporate governance
asset impairment
earnings management
SFAS No.35
early adopt
Type
other
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