The effect of assests write on the firm’s performance / Min-Tsung Cheng

Cheng, Min-Tsung (2016) The effect of assests write on the firm’s performance / Min-Tsung Cheng. Management & Accounting Review (MAR), 15 (1). pp. 1-32. ISSN 2550-1895

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Abstract

This study uses empirical evidence to determine if management recognition asset write-offs improves firm performance. The examination focuses on take-a-bath and information content strategies. The available research on management write-offs behavior presents conflicting results, some of which are interesting. First, for samples positioned at the 1%, 10%, 20%, 90% and 99% quantile level of firm performance ranking, a number of write-offs was found to positively affect the firm’s future performance, supporting the information content hypothesis. However, least squares estimates indicated a negative relationship. Second, under the least squares approach, firm performance was improved in the period following the write-offs at various quantiles, both of which support the take-a-bath hypothesis. Third, testing the equality of individual points can ensure the requisites for quantile analysis and most two-by-two matching coefficients had significant odds.

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Item Type: Article
Creators:
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Cheng, Min-Tsung
UNSPECIFIED
Subjects: Q Science > QA Mathematics > Multivariate analysis. Cluster analysis. Longitudinal method
Q Science > QA Mathematics > Multivariate analysis. Cluster analysis. Longitudinal method > Regression analysis. Correlation analysis. Spatial analysis (Statistics)
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Accountancy
Journal or Publication Title: Management & Accounting Review (MAR)
UiTM Journal Collections: UiTM Journal > Management & Accounting Review (MAR)
ISSN: 2550-1895
Volume: 15
Number: 1
Page Range: pp. 1-32
Official URL: http://arionline.uitm.edu.my/ojs/index.php/MAR/art...
Item ID: 31005
Uncontrolled Keywords: Quantile regression, asset write-offs, take-a-bath, information content
URI: https://ir.uitm.edu.my/id/eprint/31005

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31005

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