- Research Article
- Open Access
A research on impairment of assets in listed firms with negative earnings in China
© Higher Education Press and Springer-Verlag 2007
Economic factors, such as the adverse change of the industry and performance of firms, are associated with the impairment of assets reported by these firms. Listed firms with negative earnings were more likely to write off substantial assets in consecutive years, but not in the initial years of loss. However, the relationship between the impairment of assets and economic factors is insignificant after the individual effect of the firms is taken into consideration, while earnings management factors still have a significant effect on the impairment of assets, yet the difference between loss years and profitable years is insignificant.
- listed firms with negative earnings
- impairment of assets
- earnings management