Impairment reversals and stock market returns: The case of Malaysia
FRS 136 Impairment of Assets requires companies to reverse impairment loss when their impaired assets are recovered. This study examines the motivation for impairment reversals.A sample of 182 Malaysian firms that report impairment reversals during the period 2006-2009 are matched by industry and s...
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| Format: | Conference or Workshop Item |
| Language: | English |
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2015
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| Online Access: | https://repo.uum.edu.my/id/eprint/16295/1/17.pdf |
| _version_ | 1825803680350208000 |
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| author | Shaari, Hasnah |
| author_facet | Shaari, Hasnah |
| author_sort | Shaari, Hasnah |
| collection | UUM |
| description | FRS 136 Impairment of Assets requires companies to reverse impairment loss when their impaired assets
are recovered. This study examines the motivation for impairment reversals.A sample of 182 Malaysian firms that report impairment reversals during the period 2006-2009 are matched by industry and size with 182 control firms.This study finds that reversing firms outperform control firms in the year of the reversal suggesting that firms in Malaysia on average reverse impairments to reflect the recovery in the value of assets. In additional analysis, this study finds that reversal reporting by Malaysian firms that are less likely to manage earnings is positively associated with stock market returns.In contrast, reporting of
impairment reversal by firms with extremely high abnormal working capital accruals (an indication of earnings management) has no relation with stock valuation. |
| first_indexed | 2024-07-04T06:01:16Z |
| format | Conference or Workshop Item |
| id | uum-16295 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:01:16Z |
| publishDate | 2015 |
| record_format | eprints |
| spelling | uum-162952016-04-17T03:05:53Z https://repo.uum.edu.my/id/eprint/16295/ Impairment reversals and stock market returns: The case of Malaysia Shaari, Hasnah HF5601 Accounting FRS 136 Impairment of Assets requires companies to reverse impairment loss when their impaired assets are recovered. This study examines the motivation for impairment reversals.A sample of 182 Malaysian firms that report impairment reversals during the period 2006-2009 are matched by industry and size with 182 control firms.This study finds that reversing firms outperform control firms in the year of the reversal suggesting that firms in Malaysia on average reverse impairments to reflect the recovery in the value of assets. In additional analysis, this study finds that reversal reporting by Malaysian firms that are less likely to manage earnings is positively associated with stock market returns.In contrast, reporting of impairment reversal by firms with extremely high abnormal working capital accruals (an indication of earnings management) has no relation with stock valuation. 2015-10-02 Conference or Workshop Item PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/16295/1/17.pdf Shaari, Hasnah (2015) Impairment reversals and stock market returns: The case of Malaysia. In: 11th Asian Academy of Management International Conference 2015 (AAMC 2015), 2nd - 4th October 2015, Penang, Malaysia. http://www.aamc2015.usm.my/ |
| spellingShingle | HF5601 Accounting Shaari, Hasnah Impairment reversals and stock market returns: The case of Malaysia |
| title | Impairment reversals and stock market returns: The case of Malaysia |
| title_full | Impairment reversals and stock market returns: The case of Malaysia |
| title_fullStr | Impairment reversals and stock market returns: The case of Malaysia |
| title_full_unstemmed | Impairment reversals and stock market returns: The case of Malaysia |
| title_short | Impairment reversals and stock market returns: The case of Malaysia |
| title_sort | impairment reversals and stock market returns the case of malaysia |
| topic | HF5601 Accounting |
| url | https://repo.uum.edu.my/id/eprint/16295/1/17.pdf |
| work_keys_str_mv | AT shaarihasnah impairmentreversalsandstockmarketreturnsthecaseofmalaysia |