An empirical study on the effects of fixed asset write downs on corporate management in Japan

2016 Fiscal Year Final Research Report

• Project/Area Number: 15H06537
• Research Category: Grant-in-Aid for Research Activity Start-up
• Allocation Type: Single-year Grants
• Research Field: Accounting
• Research Institution: Fukui Prefectural University
• Principal Investigator: Yamashita Tomoaki 福井県立大学, 経済学部, 助教 (50754553)
• Project Period (FY): 2015-08-28 – 2017-03-31
• Keywords: 固定資産の減損会計 / 財務会計の契約支援機能 / 経営者交代 / 連続した減損損失の計上 / 利益マネジメント

Outline of Final Research Achievements

In this study, I analyzed the direct and indirect effects of fixed asset write-downs on corporate management by using data of Japanese listed firms. First,I examined whether consecutive fixed asset write-downs are related to income smoothing-a type of earnings management-but did not find evidence that firms writing downs fixed assets over consecutive years smoothed their earnings. Second, by examining archival and case studies, I found evidence of direct and indirect effects of fixed asset write-downs on corporate management, such as forced top executive turnover and/or restraining investment.

Free Research Field

財務会計