Asset write-offs discretion and accruals management in Taiwan: the role of corporate governance

Chao, Chia-Ling; Horng, Shwu-Min

doi:10.1007/s11156-011-0269-5

Cited by 15 publications

(16 citation statements)

References 86 publications

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“…The use of this proxy is consistent with prior literature (AbuGhazaleh et al. ; Chao and Horng ; Siggelkow and Zülch ).…”

Section: Methodssupporting

confidence: 89%

“…). Prior literature has found mixed results: a positive association between the recognition of impairment losses and a company's size (Chao and Horng ; Siggelkow and Zülch ), negative associations (Sevin and Schroeder ) and no association at all (Jordan and Clark ). This leads to our second hypothesis: H2 : The transition impact from the POC to the SNC on the recognition of impairment amounts is associated positively with a company's size . …”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 98%

“…; Siggelkow and Zülch ), as a response to changes in the economic environment of the firm, reflecting relevant economic information about a company's performance (Rees et al. ; Godfrey and Koh ; Lee and Yoon ; Iatridis and Senftlechner ; Jordan and Clark ), and as a reflection of country‐specific factors (e.g., differences related to audit function and accounting standards) and a firm's corporate governance characteristics (Chao and Horng ; Alves ; Iatridis and Senftlechner ). Moreover, regarding the level of compliance with disclosure requirements (Table , Panel C) prior literature has documented reduced levels of compliance regarding goodwill impairment and goodwill impairment testing (Carlin et al.…”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

“…Thus, they will be more anxious to ensure that their financial statements are credible (Guerreiro et al. ), to process accounting information more efficiently (Chao and Horng ), and to create fewer incentives for managers’ opportunistic behaviour related to impairment losses (Kwak et al. ).…”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

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Impairment Losses: The Impact of First‐time Adoption of the Accounting Standardisation System in Portugal

Oliveira

Azevedo

Oliveira

2018

Australian Accounting Review

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Portugal has been recognised as a code law country, with weak legal enforcement mechanisms and conservative accounting practices. However, since 2005, Portuguese companies have been changing their financial reporting practices to those based on common law institutional logic. In 2010, unlisted Portuguese companies began to apply a new set of accounting standards called the Accounting Standardisation System (Sistema de Normalização Contabilística -SNC) based on International Accounting Standards/International Financial Reporting Standards (IFRS). This paper seeks to analyse the impact of the first-time adoption of the SNC with regard to the accounting treatment of impairment losses. It is found that, to mitigate political costs associated with their public visibility, larger companies present more credible financial statements that reflect their overall true financial and economic condition. This study is a valuable contribution to both users of financial information and domestic standard setters to help them understand and improve the impact of accounting standards. Consistent with Khalil and Simon (2014), it also contributes to the debate on the optimal flexibility permitted by IFRS to improve reporting quality and reduce earnings management.

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“…The use of this proxy is consistent with prior literature (AbuGhazaleh et al. ; Chao and Horng ; Siggelkow and Zülch ).…”

Section: Methodssupporting

confidence: 89%

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 98%

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%

See 2 more Smart Citations

Impairment Losses: The Impact of First‐time Adoption of the Accounting Standardisation System in Portugal

Oliveira

Azevedo

Oliveira

2018

Australian Accounting Review

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“…We measure our dependent variable with the sum of the write-offs of long-lived assets on total assets, reflected as a positive amount (Francis et al, 1996;Godfrey & Koh, 2009;Riedl, 2004). Consistent with prior research, we jointly consider the write-offs of long-lived assets; that is, intangibles, like goodwill, property, plants, and equipment (Chao & Horng, 2013;Rees, Gill, & Gore, 1996;Riedl, 2004). This choice is consistent with International Accounting Standard 36, which (a) is not applied to assets such as the inventory and financial assets, (b) requires a substantial unitary write-off procedure through the creation of cash-generating units (CGUs).…”

Section: Variables and Measuresmentioning

confidence: 98%

The Influence of Family Ownership on Long-Lived Asset Write-Offs

Greco

Ferramosca

Allegrini

2015

Family Business Review

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Building on agency theory, this article investigates whether family firms’ accounting behavior regarding long-lived asset write-offs differs from that of nonfamily firms. We provide evidence that nonfamily firms use write-offs for earnings management purposes, while family firms report write-offs coherent with the firm performance. Family firms experience dwindling sales and lower profitability in the years following the write-offs, consistently with an effective decline in their assets value. The findings are consistent with reduced owner-manager agency conflicts in family firms. We find no indication of family entrenchment, which is consistent with family owners being concerned with the reputational damage associated with a loss of a firm’s asset value

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