Access the full text.
Sign up today, get DeepDyve free for 14 days.
(1992)
A closer look at discretionary writedown of impaired assets
Journal of Accounting and Economics, 33
Don Herrmann, Tatsuo Inoue, W. Thomas (2003)
The Sale of Assets to Manage Earnings in JapanJournal of Accounting Research, 41
(2002)
Boards of directors' independence among Malaysian listed companies in an emerging economy
(2007)
Asset revaluation in China: value relevance and timeliness
Journal of Accounting and Economics, 26
Shimin Chen, Yuetang Wang, Ziye Zhao (2009)
Regulatory Incentives for Earnings Management through Asset Impairment Reversals in ChinaJournal of Accounting, Auditing & Finance, 24
M. Bradbury, Y. Mak, S. Tan (2004)
Board Characteristics, Audit Committee Characteristics and Abnormal AccrualsAuditing
April Klein (2002)
Audit Committee, Board of Director Characteristics, and Earnings ManagementSEIN Corporate Governance & Accountability eJournal
(1998)
The Numbers Game” Remarks by SEC chairman Arthur Levitt delivered at the NYU centre for Law and Business
Patricia Dechow, Scott Richardson, İrem Tuna (2003)
Why Are Earnings Kinky? An Examination of the Earnings Management ExplanationReview of Accounting Studies, 8
Rong-Ruey Duh, Wen-Chih Lee, Ching-Chieh Lin (2008)
Reversing an impairment loss and earnings management: The role of corporate governanceThe International Journal of Accounting, 44
Journal of Finance, 52
M. Walker (2013)
How far can we trust earnings numbers? What research tells us about earnings managementAccounting and Business Research, 43
Dechun Wang (2006)
Founding Family Ownership and Earnings QualityJournal of Accounting Research, 44
Hyun-Ah Lee, Won-Wook Choi (2016)
Allowance for uncollectible accounts as a tool for earnings management: Evidence from South KoreaInternational Journal of Accounting and Information Management, 24
J. Francis, J. Hanna, Linda Vincent (1996)
Causes and effects of discretionary asset write-offsJournal of Accounting Research, 34
Michael Jensen, W. Meckling (1976)
Harvard Business School; SSRN; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Harvard University - Accounting & Control UnitLSN: Law & Finance: Empirical (Topic)
(1998)
Assets write-downs: a decade
E. Donnelly (2015)
Financial reporting standards
R. Porta, Florencio Silanes, Andrei Shleifer (1998)
Corporate Ownership Around the WorldCorporate Finance and Organizations eJournal
(2007)
Improving Empirical Analyses
(2006)
Board characteristics, audit committee
Pierre Titard, D. Pariser (1996)
Impaired Assets: Meeting Users' Information NeedsJournal of accountancy, 182
R. Donnelly (2008)
Accounting, board independence and contagion effects from adverse press comment: The case of ElanBritish Accounting Review, 40
David Aboody, Mary Barth, Ron Kasznik (1999)
Revaluations of fixed assets and future firm performance: Evidence from the UK 1 We appreciate helpfJournal of Accounting and Economics
(1998)
Assets write-downs: a decade of research
P. Fiechter, C. Meyer (2010)
Big Bath Accounting using Fair Value Measurement Discretion during the Financial Crisis
Chih-Jen Huang (2010)
The joint decision to manage earnings through discretionary accruals and asset sales around insider trading: Taiwan evidenceJournal of Economics and Finance, 34
Peter Kennedy (1980)
A Guide to Econometrics
C. Wang, Samuel Tung, Lin Chen‐Chang, Lan-Fen Wang, Lai Ching-Hui (2010)
Earnings management using asset sales: Interesting issues for further study under unique institutional settingsInternational Journal of Accounting and Information Management, 18
P. Hribar, Craig Nichols (2007)
The Use of Unsigned Earnings Quality Measures in Tests of Earnings ManagementFinancial Accounting
Edward Riedl (2004)
An Examination of Long‐Lived Asset ImpairmentsThe Accounting Review, 79
Eli Bartov (1993)
The Timing of Asset Sales and Earnings ManipulationsCorporate Governance & Accounting eJournal
Shimin Chen, Yuetang Wang, Ziye Zhao (2007)
Evidence of Asset Impairment Reversals from China: Economic Reality or Earnings Management?
Journal of Financial Economics, 3
A. Reinstein, G. Lander (2004)
Implementing the impairment of assets requirements of SFAS No. 144Managerial Auditing Journal, 19
S. Claessens, Simeon Djankov, L. Lang (1999)
The Separation of Ownership and Control in East Asian CorporationsCorporate Finance and Organizations eJournal
(2014)
IFRS Adoption among Private Companies: Impact on Earnings Quality
(1998)
Earnings Management Using Asset
Edward Riedl (2003)
An Examination of Long-Lived Asset ImpairmentsSocial Science Research Network
R. Porta, Florencio Silanes, Andrei Shleifer, Robert Vishny (1997)
Legal Determinants of External FinanceCapital Markets eJournal
Journal of Financial Economics, 58
R. Sprouse (1975)
Toward a science of accounting
Journal of Business Finance and Accounting, 32
D. Yermack (1996)
Higher market valuation of companies with a small board of directorsJournal of Financial Economics, 40
Patricia Dechow, Richard Sloan, A. Sweeney (1994)
DETECTING EARNINGS MANAGEMENTAccounting review: A quarterly journal of the American Accounting Association, 70
(1996)
Causes and effects of discretionary assets write-offs
Corporate Governance: An International Review, 15
Yu Chen, Z. Rezaee (2012)
The role of corporate governance in convergence with IFRS: evidence from ChinaInternational Journal of Accounting and Information Management, 20
Pernilla Broberg, S. Collin, T. Tagesson, Monika Axelsson, Charlotta Schéle (2011)
Why reduce profit? Accounting choice of impairments in Swedish listed corporationsInternational Journal of Accounting and Finance, 3
D. Cho, Jootae Kim (2007)
Outside Directors, Ownership Structure and Firm Profitability in KoreaCorporate Finance: Governance
Journal of Accounting and Economics, 39
Biao Xie, W. Davidson, Peter Dadalt (2003)
Earnings management and corporate governance: the role of the board and the audit committeeJournal of Corporate Finance, 9
C. Cheng, Stephen Lin (2009)
When do firms revalue their assets upwards? Evidence from the UKInternational Journal of Accounting and Information Management, 17
(2000)
Korea”, Corporate Governance
Jere Francis, Edward Maydew, H. Sparks (1999)
The Role of Big 6 Auditors in the Credible Reporting of AccrualsEar and Hearing, 18
Pascale Lapointe-Antunes, D. Cormier, M. Magnan (2009)
Value relevance and timeliness of transitional goodwill-impairment losses: Evidence from Canada ☆The International Journal of Accounting, 44
J. Strong, Jack Meyer (1987)
Asset Writedowns: Managerial Incentives and Security ReturnsJournal of Finance, 42
Michael Kirschenheiter, Nahum Melumad (2002)
Can "Big Bath" and Earnings Smoothing Co-exist as Equilibrium Financial Reporting Strategies?Journal of Accounting Research, 40
C. Jordan, S. Clark (2011)
Big Bath Earnings Management: The Case Of Goodwill Impairment Under SFAS No. 142Journal of Applied Business Research, 20
Journal of Financial Economics, 69
James Hansen (2010)
The Effect of Alternative Goals on Earnings Management Studies: An Earnings Benchmark ExaminationJournal of Accounting and Public Policy, 29
(2002)
Boards of directors' independence among Malaysian listed
(2012)
The role of corporate governance in convergence with
P. Healy, James Wahlen (1998)
A Review of the Earnings Management Literature and its Implications for Standard SettingCorporate Governance & Accounting eJournal
Rafael Porta, Florencio López‐de‐Silanes, Andrei Shleifer, Robert Vishny (1996)
Law and FinanceJournal of Political Economy, 106
(2016)
Allowance for uncollectable accounts as a tool for earnings management Evidence from South Korea
Mark Defond, Chul Park (2001)
The Reversal of Abnormal Accruals and the Market Valuation of Earnings SurprisesThe Accounting Review, 76
Pacific Accounting Review, 18
Journal of Finance, 54
(2007)
companies in an emerging economy
Iszmi Ishak, N. Zaki, N. Salleh, A. Rashid (2011)
Family Control and Earnings Management: Malaysia Evidence
John Elliott, W. Shaw (1988)
Write-Offs as Accounting Procedures to Manage PerceptionsJournal of Accounting Research, 26
Stephen Moehrle (2002)
Do Firms Use Restructuring Charge Reversals to Meet Earnings TargetsThe Accounting Review, 77
S. Kothari, A. Leone, Charles Wasley (2002)
Performance Matched Discretionary Accrual MeasuresMIT Sloan School of Management Working Paper Series
R. Kalra (2004)
Earnings Management and Investor Protection: An International ComparisonCfa Digest, 34
K. Peasnell, P. Pope, S. Young (2000)
Board Monitoring and Earnings Management: Do Outside Directors Influence Abnormal Accruals?Financial Accounting
Ran Zhang, Zhengfei Lu, Kangtao Ye (2010)
How do firms react to the prohibition of long-lived asset impairment reversals? Evidence from ChinaJournal of Accounting and Public Policy, 29
S. Kothari, A. Leone, Charles Wasley (2005)
PERFORMANCE MATCHED DISCRETIONARY ACCRUALS, 39
Accounting Horizons, 13
The Accounting Review, 68
(2009)
Evidence of asset impairment reversals
A. Loh, TingYean Tan (2002)
Asset Write-Offs - Managerial Incentives and Macroeconomic FactorsCorporate Finance: Governance
Thomas Brambor, W. Clark, Matt Golder (2006)
Understanding Interaction Models: Improving Empirical AnalysesPolitical Analysis, 14
E. Black, K. Sellers, Tracy Manly (1998)
Earnings Management Using Asset Sales: An International Study of Countries Allowing Noncurrent Asset RevaluationJournal of Business Finance & Accounting, 25
PurposeThis paper aims to provide evidence that will inform the convergence debate regarding accounting standards. The authors assess the ability of impairment reversals allowed under International Accounting Standard 36 but disallowed by the Financial Accounting Standards Board to provide useful information about a company.Design/methodology/approachThe authors use a sample of 182 Malaysian firms that reversed impairment charges and a matched sample of firms which chose not to reverse their impairments. Further analysis examines if reversing an impairment charge is associated with motivations for and evidence of earnings management.FindingsThe authors find no evidence that the reversal of an impairment charge marks a company out as managing contemporaneous earnings. However, they document evidence that firms with high levels of abnormal accruals and weak corporate governance avoid earnings decline by reversing previously recognized impairments. In addition, companies that have engaged in big baths as evidenced by high accumulated impairment balances and prior changes in top management, use impairment reversals to avoid earnings declines.Research limitations/implicationsThe results of this study support both the informative and opportunistic hypotheses of impairment reversal reporting using Financial Reporting Standard 136.Practical implicationsThe results also demonstrate how companies that use impairment reversals opportunistically can be identified.Originality/valueThe results support IASB’s approach to the reversal of impairments. They also provide novel evidence as to how companies exploit a cookie-jar reserve created by a prior big bath opportunistically.
International Journal of Accounting and Information Management – Emerald Publishing
Published: May 8, 2018
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.