Regulatory Incentives for Earnings Management through Asset Impairment Reversals in China

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	Regulatory Incentives for Earnings Management through Asset Impairment Reversals in China
	Chen, Shimin 1; Wang, Yuetang 2; Zhao, Ziye 3
刊名	JOURNAL OF ACCOUNTING AUDITING AND FINANCE
	2009-10
卷号	24 期号:4 页码:589-620
关键词	Asset Impairment Reversals Regulatory Incentives Earnings Management Accounting Discretion
ISSN号	0148-558X
英文摘要	While asset impairment reversals are practiced in many jurisdictions, empirical evidence is rare. China provides us with a unique opportunity to examine both the determinants and consequences of impairment reversals resulting from recent developments in standard-setting and its specific performance-based listing requirements. Based on a sample of reversal firms in China, we report the following findings: First, Chinese-listed companies are motivated by regulatory incentives to reverse asset impairments to reduce or avoid the possibility of trading suspension or de-listing. Second, we provide some evidence that the value-relevance of reversal information appears to be negatively affected by the regulatory-motivated earnings management. Third, favorable internal and external monitoring mechanisms play a role in constraining this type of earnings management. Taken together, we conclude that while the intention of granting reversal discretion is for managers to reveal private value recovery information, our findings suggest that a seemingly improved accounting standard does not necessarily lead to its intended consequence in financial reporting.
WOS研究方向	Business & Economics
语种	英语
出版者	SAGE PUBLICATIONS INC
WOS记录号	WOS:000212029100005
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/2443]
专题	上海财经大学
通讯作者	Chen, Shimin
作者单位	1.China Europe Int Business Sch, Dept Accounting & Finance, Shanghai, Peoples R China; 2.Nanjing Univ, Dept Accounting, Nanjing, Jiangsu, Peoples R China; 3.Shanghai Univ Finance & Econ, Sch Accountancy, Res Inst Accounting & Finance, Shanghai, Peoples R China
推荐引用方式 GB/T 7714	Chen, Shimin,Wang, Yuetang,Zhao, Ziye. Regulatory Incentives for Earnings Management through Asset Impairment Reversals in China[J]. JOURNAL OF ACCOUNTING AUDITING AND FINANCE,2009,24(4):589-620.
APA	Chen, Shimin,Wang, Yuetang,&Zhao, Ziye.(2009).Regulatory Incentives for Earnings Management through Asset Impairment Reversals in China.JOURNAL OF ACCOUNTING AUDITING AND FINANCE,24(4),589-620.
MLA	Chen, Shimin,et al."Regulatory Incentives for Earnings Management through Asset Impairment Reversals in China".JOURNAL OF ACCOUNTING AUDITING AND FINANCE 24.4(2009):589-620.