Motives for fixed-asset revaluation: An empirical analysis with Swiss data

Missonier-Piera, Franck

doi:10.1016/j.intacc.2007.04.006

Cited by 56 publications

(48 citation statements)

References 44 publications

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“…The study by Missonier-Piera [10] is adopted to measure leverage as follows: = where total debt is the interest-bearing debts, such as shortterm debt, short-term portion of long-term debt, lease, longterm debt, and bond debt; and total Assets is the total assets of the company.…”

Section: Impact Of Fixed Assets Revaluation On Leverage and Carmentioning

confidence: 99%

Analysis of Impact of Implementation of Fixed Assets Revaluation Model in Property, Real Estate, Construction, and Bank Companies Listed in Capital Market in 2015

Giani¹,

Martani²

2019

Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)

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The purpose of the present study is to analyze property, real estate, construction companies, and banks that were revalued in 2015 and the impact of this revaluation on the companies. The study results show that 20% of property, real estate, and building construction companies that revalued the majority of their company have reduced in leverage after revaluation and increased in debt on revaluation period or thereafter. Subsequently, the results show that 59% of banks that revalued majority of their company have increased capital adequacy ratio after revaluation and increased loan distribution on revaluation period or thereafter.

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Section: Impact Of Fixed Assets Revaluation On Leverage and Carmentioning

confidence: 99%

Analysis of Impact of Implementation of Fixed Assets Revaluation Model in Property, Real Estate, Construction, and Bank Companies Listed in Capital Market in 2015

Giani¹,

Martani²

2019

Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)

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“…They found that upward revaluations of fixed assets by UK Firms were significantly positively related to changes in future performance, measured by operating income and cash flow from operations, indicating revaluations reflect asset value changes. Missonier-Piera [13] found a new variable that high export sales were associated with the use of upward asset revaluation. His findings suggest that revaluation is used as a device to improve the perceptions of creditors about the financial health of the firm and thereby improve the firm's borrowing capacity.…”

Section: Review Of Literaturementioning

confidence: 99%

Revaluation of Fixed Assets Before IPO: A Study on Textile Industry in Bangladesh

Rahman¹

2017

JFA

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Abstract:The textile and clothing sector of Bangladesh contributes more than 81 percent of foreign exchange earnings of the country. Considering the number of companies listed on the Dhaka Stock Exchange (DSE), textile was the second largest sector having 44 companies after insurance. Around fifty percent companies of the sector became listed on the DSE through Initial Public Offerings (IPO) during the period of January 2010 to March 2016. The study, based on prospectus data, intended to explore the practice of pre-IPO revaluation of fixed assets by textile industry in Bangladesh. Related objective of this study was to find out the factor(s) that influence(s) the growth of revaluation amount. Among the years under study, the highest number of textile companies became listed on DSE during 2014 and 2015 that accounted for about 55 percent growth of the sector. In the midst of controversies and doubts about the application and fairness of asset revaluation practice, a large number of textile companies in Bangladesh have been found revaluing their fixed asset as an option outlined in IAS 16. Thanks to the revaluation of fixed asset, average Net Asset Value (NAV) of textile companies raised from BDT 16.95 per share to BDT 28.54 per share with an increase of 68.38 percent. The study has observed an average increase in the value of fixed assets by 42 percent with a minimum of 4 percent and a maximum of 130 percent. Intensity of fixed assets has been found to have significant negative influence on the growth of fixed assets. This implies that textile companies which have low percentage of fixed assets on total asset observed hefty growth of fixed asset after revaluation. It is expected that the outcomes of the study will be useful to regulators, investors, financial analysts, and academics. Reporting of fixed assets in current market prices would assist investors and others make unbiased predictions about firms' future performance. However, the condition is that asset revaluation should be made with utmost fairness and transparency.

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“…An investigation conducted in this study indicates that some of MREITs voluntarily revalued their investment properties more than once in every three years. This can be due to several reasons such as to avoid violations of debt covenants and to achieve transparent reporting (Missonier-Piera 2007). Higher disclosure has been found to relate to governance structure.…”

Section: Background Malaysian Real Estate Investment Trusts (Mreits)mentioning

confidence: 99%

Value Relevance of Investment Properties’ Fair Value and Board Characteristics in Malaysian Real Estate Investment Trusts

Mei

Hassan

Embong

2014

AJAG

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Motives for fixed-asset revaluation: An empirical analysis with Swiss data

Cited by 56 publications

References 44 publications

Analysis of Impact of Implementation of Fixed Assets Revaluation Model in Property, Real Estate, Construction, and Bank Companies Listed in Capital Market in 2015

Analysis of Impact of Implementation of Fixed Assets Revaluation Model in Property, Real Estate, Construction, and Bank Companies Listed in Capital Market in 2015

Revaluation of Fixed Assets Before IPO: A Study on Textile Industry in Bangladesh

Value Relevance of Investment Properties’ Fair Value and Board Characteristics in Malaysian Real Estate Investment Trusts

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