英文摘要 |
Chinese public firms use long-term asset impairment write-downs and reversals to shift earnings between accounting periods. The new Chinese Accounting Standard prohibits firms to reverse long-term asset impairment loss from 2007. However, managers can dispose the impaired assets to realize the over-estimated impairments. This study examines whether Chinese companies would recognize the gain on disposal of fix and intangible assets to realize the impairment loss after 2007. The result indicates that the firms which recognized impairment loss have a higher abnormal disposal gain rather than the firms that did not recognize impairment after 2007. In addition, the firms with higher abnormal reserve of impairment have higher abnormal disposal gain after 2007. Furthermore, the firms that disclosed loss in the previous year have a higher abnormal disposal gain in the following year after 2007. Finally, the firms with better corporate governance have a lower abnormal disposal gain after 2007. |