Empirical Studies Of Assets Impairment Motivation Of GEM Companies

Our GEM in 30 October 2009, began to stock exchange. GEM companies though high growth, but relative to the investors, investment risk of GEM companies than investment motherboard market listed company much higher. Accurate calculation enterprise value for GEM companies investors more important, value of assets counted accurately counted accurately is the basis of enterprise value. In recent years, have literature research shows that asset impairment policy is China's listed companies the mainboard earnings management a tool, the listed company's annual report did not reflect the real value of the enterprise assets. So, GEM companies using asset impairment whether earnings management? GEM companies existing in the asset impairment provision what motive? This is the article will explore the key content.Look from whole, the article is divided into theory research and empirical analysis of two aspects, theoretical study is the foundation and empirical studies are extensions. This paper is to GEM companies asset impairment motives for empirical test. Full text is divided into six parts.The first part is the introduction section. This paper mainly introduces the research background, significance, articles, research methods and research ideas and major innovations. This partly from a theoretical perspective analyzes GEM companies provision for impairment of assets.The second part is mainly to the asset impairment related literature and policy change for this review, the empirical test provides research background. About asset impairment motivation, including domestic and foreign literatures, property depreciation accountant thought development, western and Chinese asset impairment policy, from the overall development of the articles on description, understand the development of asset impairment policy is to study the foundation assets impairment motivation.The third part is the related theory of asset impairment motivation. Studies the theoretical basis and the core asset impairment, and for those assets impairment motives were analyzed, and it to prepare for empirical research. Mainly includes asset impairment of assets, the assets devaluation accounting concept, the definition, property depreciation accountant's theoretical basis for asset impairment, the recognition, measurement and disclosure. This part of the content for enterprises to select executive asset impairment theoretical assumptions policy motives.The fourth part is GEM companies asset impairment policy choice motives analysis. From the Angle of GEM companies, analyze it choose asset impairment existing economic motivation policy. This part content is aimed at GEM companies choose asset impairment policy hypothesis economic motivation.The fifth part is GEM companies implement assets impairment motivation of empirical analysis, this is the full text of the key. This part of the GEM listing 127 enterprise assets impairment provision of each specific projects as research samples, according to assets impairment provision of motivation puts forward relevant assumption and empirical research. Research shows that:the political cost hypothesis was established hypotheses asset scale, debt contract the asset-liability ratio hypothesis and the flow rate of hypothesis is not set up, the enterprise has the profit motives of smooth establishment and enterprise asset turnover ratio hypothesis of the compensation plan ownership concentration founded but compensation plans in assumptions in China was not.The sixth part is research conclusions and policy recommendations. The empirical analysis is mainly for the conclusion of the policy recommendations. The main conclusion is:"western three assumptions" in China's GEM companies not true; Our GEM companies choose asset impairment provision may have profit smooth motivation, assets impairment provision of undeserved, the new criterion proportion come or old criterion revision will not immediately improving accounting information quality improvement. Finally summarizes the study found, from assets devaluation accounting system, corporate governance and accounting personnel professional skill training and professional ethics education, securities market supervision and assets evaluation environment are five aspects of policy recommendations in China, this will be for assets impairment provision policy to provide some reference.Study motivation for assets impairment GEM to perfect our country GEM companies assets devaluation accounting standards formulated, in assets devaluation accounting standards GEM when the option of accounting policy reduced suitably, which not only help the government supervision of GEM companies may also help solve GEM companies overvalued assets, manipulate profit and accounting information distortion. Now with the market risk and uncertainty, people pay more and more attention to assets, rather than the current value of the assets of the historical value and assets impairment motivation to study better measurement stakeholder value of assets GEM companies. This paper GEM companies assets impairment motivation empirical studies conducted by analyzing the factors affecting assets impairment, for the construction of the assets devaluation accounting standards provide theoretical and empirical support.Because China GEM open board time history also still short, this article only GEM companies an accounting year assets impairment provision of data, GEM companies assets impairment provision for some of the motives might have yet to appear. The future study can extend the research data, to GEM companies plan assets impairment motive need further tracking survey.