The Research between Price to Book Value Ratio and Market Reaction of write-off announcement

• Main Authors: Shu-Wun Luo, 羅淑文
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/11570315250652867343

碩士 === 國立雲林科技大學 === 會計系研究所 === 94 === According to Statements of Financial Accounting Standards (SFAS) No.35 - Accounting for Asset Impairment, this study is focused on as a company price is lower than book value it’s need to take an impairment test for asset, to recognize asset impairment loss in the financial report. It’s believed here that before a company declared its recognized asset impairment loss, its net carrying amount of asset has been shown in the market. So the fluctuation of stock prices affected by the amount of accumulated asset impairment loss recognized in companies of the kind is minor. This study adopts the multiple regression analysis. The sample companies are constrained to 2004 listed companies in Taiwan. The empirical result evidence that the market suggests that reaction of stock market caused by the amount of accumulated asset impairment loss recognized in a company whose total market price is lower than net carrying amount of asset is indeed subtle.