The Listed Company Asset Impairment Impact On Earnings Management Research

The accounting of asset impairment has been in China for nearly 30 years,and it is a common phenomenon of listed companies in our country.Aiming at this phenomenon,our country formally implemented in 2007,the accounting standards for enterprises no.8-asset impairment,and hope that by limiting the long-term assets impairment provision and turn it back,constraints,our country enterprise earnings management phenomenon;But the current asset reduction guidelines do not ban the return of short-term write-downs,leaving the listed companies with a surplus management space.So far,the current asset impairment criteria in 2007 for ten years,the current asset impairment criteria in the actual operation process whether to play a role of the constraints of earnings management;Limiting long-term write-downs of assets will not be reversed,and will be able to prevent companies from using long-term asset impairment to prepare for surplus management;Does the provision of short-term write-downs and the retraction of short-term assets affect the management of corporate surplus?This is the focus of this article.This article chose the listed on January 1,2004 Shanghai a-share manufacturing companies as the research object,the original sample after screening chose 377 listed manufacturing industry companies,from 2005 to 2015,A total of 4147 observations as the research sample.Using descriptive statistics and regression analysis method,testing impairment of fixed assets net net rate of provision,provision for bad debts provision ratio and firm size,the influence of the asset-liability ratio on earnings management.The main analysis:(1)Whether the existing asset reduction criterion constrains the enterprise's surplus management behavior;(2)Whether the existing asset impairment criterion can inhibit the behavior of enterprises using long-term asset impairment to carry out surplus management;(3)Whether the listed company has the practice of using short-term asset impairment to enforce the surplus management.Through theoretical analysis and empirical analysis,the empirical results show that:(1)The existing asset impairment criterion does not achieve the desired effect,and it is not obvious to the restraint of the corporate surplus management behavior.Although the current asset impairment criteria on the basis of the old rules to make the correction,but still can not completely eliminate the use of asset impairment for surplus management behavior.(2)The behavior of the listed company's provisions for reducing the value of fixed assets is not obviously changed due to the implementation of the current asset reduction criterion.But after the implementation of current asset impairment criteria,help to reflect the actual long-term assets value of the enterprise is,therefore,this article research conclusion to support the current asset impairment criteria for not allowed back in.(3)The practice of using short-term asset impairment to control surplus management has increased following the implementation of the existing asset reduction guidelines.Current asset impairment criteria,there is no limit to return has the disadvantages of short-term assets impairment provision,the enterprise can be based on short-term assets impairment provision and turned back to implement earnings manipulation.According to the above research,this paper puts forward some Suggestions on perfecting the internal environment of the corresponding policies and regulations and the asset impairment.(1)Improve the corresponding accounting standards.Reasonable estimate of recoverable amount according to the nature of the assets;By using a single cash flow to shrink the enterprise's choice space;The long-term assets of the asset group cannot be formed,and the impairment loss of such assets can be calculated by shortening the amortization period.(2)Standardize the information disclosure system of listed companies.Listed companies must return detail provisions,the amount of the asset impairment and reasons,and therefore caused the enterprise to explain the influence of operating profit,publish all information related to the impairment of assets.Improve management structure and internal control system.By improving the management structure of the company,establishing the correct and effective incentive mechanism,and eliminating the behavior of enterprises to control surplus management through asset impairment.Strengthen the monitoring behavior of internal management and reduce the possibility of enterprises using the impairment of assets to manage surplus.Strengthen the professional ethics and professional quality of accountants.Enterprise accounting personnel to improve their professional skills,pay attention to improving the quality of the moral,and remain on high alert,can maximum limit inhibit earnings management behavior of enterprise.