By making thorough empirical analysis on the financial data from 2001 to 2007 of listed companies in China, we find that the impairment allowance for non-current assets obviously decreases the quality of accounting earnings. Investment portfolio based on accrual earnings created by impairment allowance for non-current assets can obtain abnormal return. There is a negative relationship between accrual earnings created by impairment allowance and abnormal return. It is concluded that market can't "see through" the influence impairment allowance for non-current assets has on quality of earnings. This supports the regulation of new Chinese Accounting Standard that it forbids the reversion of impairment allowance for non-current assets.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Impairment Allowance for Non-Current Assets: Quality of Earnings and Market Reaction


    Contributors:

    Conference:

    Second International Conference on Transportation Engineering ; 2009 ; Southwest Jiaotong University, Chengdu, China



    Publication date :

    2009-07-29




    Type of media :

    Conference paper


    Type of material :

    Electronic Resource


    Language :

    English




    Impairment Allowance for Non-Current Assests: Quality of Earnings and Market Reaction

    Ding, F. / He, Z. / China Communications and Transportation Association; Transportation & Development Institute (American Society of Civil Engineers) | British Library Conference Proceedings | 2009




    TRAFFIC ALLOWANCE METHOD

    OHRENSTEIN ROBERT | European Patent Office | 2020

    Free access

    Traffic allowance method

    OHRENSTEIN ROBERT | European Patent Office | 2021

    Free access