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| Accounting Standard Change, Earning Management and Value Relevance of Assets Impairment |
| ZHOU Dong hua |
| school of accounting, Jiangxi University of finance and economics |
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Abstract Value-relevance is an important feature of the accounting information quality. Various types of assets information differ in value-relevance. This paper analyzes the value-relevance of assets impairment ex-ante the changing of accounting standards based on the change of China accounting system since 1st, Jan, 2007.We found that: Earnings management would damage the value-relevance of asset impairment. The public companies determined for regain or for great purge are significantly weaker than companies with the profit before assets impairment. The value-relevance of assets impairment is higher in the new accounting standards stage than the old accounting standards stage. The new assets impairment standards deny the previous assumption of sacrificing the value relevance for reliability.
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Received: 17 April 2012
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Corresponding Authors:
ZHOU Dong hua
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2012, Vol. 1 
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