The Impact Of Investment Impairment Of Assets Of Non-efficiency Of The Enterprise

In 2006,the ministry of finance promulgated the new accounting standard for business enterprises(hereinafter referred to as the "New Accounting Standard"),which fully achieved the overall convergence of our financial reporting standards with international financial reporting standards.One.of the highlights is the asset impairment criteria,the guidelines become the focus of researchers and practitioners.In the new standard,asset impairment is set as a separate standards,making the accounting for losses of assets on the recognition,measurement more detailed,meanwhile extending the application of the provision for impairment to almost all the assets,and the new provisions of the "long-term impairment must not get returned" reflects the new guidelines not only quotes fair value measurement in a wide range,but also strengthens the robustness of the fair value principle.After the financial crisis in 2008,in order to stimulate investment,the state has stated a series of loose monetary policy,making the investment scale is growing.However,behind this huge scale of investment,Chinese listed companies widely exist inefficient investment.Then the asset impairment provision in new standard in the end will produce what kind of economics consequences?Does the asset impairment provision help enterprises reduce inefficient investment?In this paper,we will study the impact of asset impairment provision on the inefficient investment behavior of Chinese listed companies with asset impairments as a reflection of the system of accounting conservatism.At the same time,we expect to provide sufficient experience with investors and market players,and revision of accounting standards with a reference.Based on many scholars'papers of accounting conservatism and the inefficient'investment,with the agency theory,information asymmetry theory and behavioral finance theory,this paper analyzes 6879 A-share listed companies in Shanghai and Shenzhen from 2008 to 2014,draw lessons from Richardson model of non-efficient inestment behavior.The results of this study show that:The provision of asset impairment provision can effectively inhibit the occurrence of excessive investment,but it will also aggravate the lack of investment.The asymmetric confirmation of the provision of asset impairment for the loss and income makes the investment results are reflected in the current timely,to a large extent limit the opportunistic will of the main body of management,all the companies' creditors not participate in the management can also grasp the company's information,and supervise in real-time.On the other hand,the provision of asset impairment caused the entire accounting system to undervalue the assets and earnings data,the accounting signal once get out of the company,it will inevitably have a negative impact on financing,such as the expenses of corporate financing increased,can not raise the required funds.The empirical results of this paper also show that the provision of asset impairment is particularly significant for the company's over-investment,and its inhibitory effect on the economy(for over-investment)may be beneficial to the company's value increment.This paper draws the inspiration that when the company has sufficient cash flow and large investment scale,the enterprise should pay attention to the supervisory role of the asset impairment policy.When the company cash flow is insufficient and the investment scale is small,the enterprise should use the asset depreciation policy cautiously.