The association between asset write-offs and discretionary accruals: Evidence from the U.S.
碩士 === 淡江大學 === 會計學系碩士班 === 96 === The Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” in 2002. This study examines whether earnings management incentives affect the association...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2008
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| Online Access: | http://ndltd.ncl.edu.tw/handle/60154067375515063079 |
| Summary: | 碩士 === 淡江大學 === 會計學系碩士班 === 96 === The Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” in 2002. This study examines whether earnings management incentives affect the association between the amount of assets impairment loss and discretionary accruals. This paper also aims to explore whether corporate governance affect the association between asset write-offs and concurrent discretionary accruals. Empirical results document that this association are subject to earrings management motives. Specifically, for “big bath” and “income smoothing” firms, managers tend to manage the earnings downward by the magnitude of asset write-offs and discretionary accruals. Additional analyses reveal that strong governance mechanisms have a higher propensity to constrain managers to engage in earnings management activities, namely “big bath” and income smoothing behaviors
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