Research On The Inlfuence Factors Of Listed Companies’ Assets Depreciation In China Based On Empirical Data On The SME Board

Under the accounting objective of the valuable decision-making viewpoint,accounting information is that were provided to investors for the valuable decision-making.Rather than the balance of the asset’s account under the principle of Historical cost, theinvertors pay close attention to the real value of asset. Because of the strong outside forcethat the investors pursue the valuable decision-making accounting information and theinherent force that enterprises evade the risk for uncertain economy environment, assetimpairment was widely used to improve the effectiveness of accounting information. OurSME board in2004，began to stock exchange. SME board companies though high growth,but relative to the investors, investment risk of SME board companies than investmentmother board market listed company much higher. Accurate calculation enterprise valuefor SME board companies investors more important, value of assets counted accuratelycounted accurately is the basis of enterprise value. In February152006, the Ministry ofFinance issued the "Accounting Standards for Enterprises No.8-Impairment of Assets",which make a more clear and detailed requirements in impairment of assets, recognition,and measurement. The standard has executed in listed companies for more than severalyears. So how the policy has been carried out, what factors influence the behavior whenChinese listed companies wrote-down the assets and were there any manipulations, theseabove are what this thesis focuses on.The paper includes theory and empirical research， especially highlighting theempirical research on the motivation of assets depreciation. In the theory research, weanalyze impairment of assets of the development process, the theoretical foundation andthe asset impairment of the recognition etc. In the empirical research, we propose researchhypotheses firstly and choose in the years of2009、2010and2011and described statisticsand regression analysis using statistical analysis software as SPSS. Firstly, the studydiscussed the factors that affect the listed companies on SSEA share, to decide to recognizeasset impairment. On the economic substantial factors, the ratio of sales increased, thecompany operating net cash flow growth and ROA of the industry are chose as variables totest the effect to the assets impairment. Under the earnings management factors, losses,take big bath, profit smoothness and management changes are chose.Some conclusions can be drawn as follows: the empirical results evidence shown thatthe ratio of sales increased, the company operating net cash flow growth and ROA of theindustry shown insignificant relation with the asset impairment recognition. Losses andtake big bath are statistic positive in impairment of assets, but profit smoothness andmanagement changes are not statistic positive in impairment of assets. At last, the thesisgives some suggestions on how to supervise the use of the asset’s impairment policies inthe right ways.