| Summary: | 碩士 === 元智大學 === 會計學程 === 99 === The purpose of this research is to provide references to the regulation development unit. This study adopts two-stage approach to explore whether impairment of assets will affect the performance of a company. In the first step dynamic data envelopment analysis model is used to evaluate the operating performance of listed electronic firms in Taiwan from 2004 to 2009. Furthermore, in the second step statistical tests are applied to explore the efficiency variation between the period before and after companies recognizes asset impairment, and thereby to examine if the efficiency variation would be an incentive for corporate managers to report asset impairment, which, in consequence, could reveal whether Taiwan SFAS No. 35 does play a key role in earnings management. Several empirical findings are as follows: Managers recognize asset impairment when their corporations have poor performance compared to that of the other corporations in the same industry, and that their performance keeps on improving in both the year of recognizing asset impairment and the following year. Hence, managers tend to make the decision of recognizing asset impairment so as to improve the performance while the companies are under mismanagement. This study suggests that more studies be done in other related industries as validation.
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