Study On Allocation Behavior Of Impairment Of Assets Reserves Of The Listed Companies With Small Profits

Allocation behavior of impairment of assets reserves of the listed companies is the hot research spot in theory and research area. The factors affecting the allocation behavior of impairment of assets reserves of the listed companies were studied from different aspects and point. Now there are a large number of research results. Factors should be different in listed companies with different profit, such as loss and small profit companies.In this paper, 244 meager profits of listed companies in Shanghai and the Shenzhen Securities Exchange are chosen from 2004 to 2006 as study samples. The factors affecting the allocation behavior of impairment of assets reserves of the listed companies with small profits are analyzed by linear regression analysis and different influence on the same company in Shenzhen Securities Exchange by the factors are compared between continued small profits and losses year with stacked regressions method. The allocation behavior of impairment of assets reserves of the listed companies with small profits are affected by economical factors and earning management, not obviously by industry achievement. This shows that the allocation behavior of impairment of assets reserves of the listed companies with small profits reflects the change of company business environment; the difference affected by company achievement and earning management factors is outstanding before and after the year of continued small profits and losses. So, the paper assumptions are proved.