Financial Crisis and Impairment Recognition in Non-Financial Assets
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng por |
Título da fonte: | Revista Brasileira de Gestão de Negócios (Online) |
Texto Completo: | https://rbgn.fecap.br/RBGN/article/view/4108 |
Resumo: | Purpose – To analyse the impact of the financial crisis on the recognition of non-financial asset impairments in European listed companies.Theoretical framework – The study explores the impact of the theory of measuring the economic value of non-financial assets on managers’ decisions to recognize impairments, especially in the context of an economic crisis.Design/methodology/approach – Logit and ordinary least squares models were estimated to analyse the probability of recognition and the amount of impairment recognized, respectively, over a 10-year period.Findings – The results show that European companies recognized less impairments during the crisis, including companies in countries that have used external financial aid, suggesting that managers may use impairment recognition as a way of practicing earnings management.Research Practical & Social implications – The results are of interest to several stakeholders, namely: creditors, investors, financial market regulators, entities that prepare and oversee the application of accounting and auditing standards, and ultimately European leaders in terms of structural reforms and investor protection laws.Originality/value – The study contributes to the literature that analyses the impact of the financial crisis on the recognition of impairments in non-financial assets and, in particular, in the context of greater financial fragility. It also contributes to the literature on the use of discretion in the recognition of impairments and earnings management practices. Moreover, it adds to the theoretical debate regarding the principles of measurement in the context of impairment, and how this may affect assessments of the economic values of non-financial assets.Keywords – financial crisis; European listed companies; non-financial asset impairments; earnings management. |
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Financial Crisis and Impairment Recognition in Non-Financial AssetsCrise financeira e o reconhecimento das imparidades em ativos não financeirosfinancial crisisEuropean listed companiesnon-financial asset impairmentsearnings managementPurpose – To analyse the impact of the financial crisis on the recognition of non-financial asset impairments in European listed companies.Theoretical framework – The study explores the impact of the theory of measuring the economic value of non-financial assets on managers’ decisions to recognize impairments, especially in the context of an economic crisis.Design/methodology/approach – Logit and ordinary least squares models were estimated to analyse the probability of recognition and the amount of impairment recognized, respectively, over a 10-year period.Findings – The results show that European companies recognized less impairments during the crisis, including companies in countries that have used external financial aid, suggesting that managers may use impairment recognition as a way of practicing earnings management.Research Practical & Social implications – The results are of interest to several stakeholders, namely: creditors, investors, financial market regulators, entities that prepare and oversee the application of accounting and auditing standards, and ultimately European leaders in terms of structural reforms and investor protection laws.Originality/value – The study contributes to the literature that analyses the impact of the financial crisis on the recognition of impairments in non-financial assets and, in particular, in the context of greater financial fragility. It also contributes to the literature on the use of discretion in the recognition of impairments and earnings management practices. Moreover, it adds to the theoretical debate regarding the principles of measurement in the context of impairment, and how this may affect assessments of the economic values of non-financial assets.Keywords – financial crisis; European listed companies; non-financial asset impairments; earnings management.Objetivo – Analisar o impacto da crise financeira no reconhecimento de imparidades de ativos não financeiros nas empresas cotadas europeias.Referencial teórico – O estudo explora o impacto da teoria da mensuração do valor econômico dos ativos não financeiros na decisão dos gestores de reconhecer imparidades, nomeadamente em contexto de crise econômica.Metodologia – Foram estimados modelos Logit e Ordinary Least Squares para analisar a probabilidade de reconhecimento e o montante de imparidades reconhecido, respectivamente, em um período de 10 anos.Resultados – Os resultados evidenciam que as empresas europeias reconheceram menos imparidades durante a crise, incluindo as empresas dos países que recorreram à ajuda financeira externa, sugerindo que os gestores podem usar o reconhecimento de imparidades como forma de praticar gestão de resultados.Implicações práticas e sociais da pesquisa – Os resultados são de interesse para vários stakeholders, concretamente: credores, investidores, entidades reguladoras dos mercados financeiros, entidades que preparam e fiscalizam a aplicação de normas de contabilidade e de auditoria, e em última instância para os líderes europeus no que diz respeito a reformas estruturais e leis de defesa dos investidores.Contribuições – O estudo contribui para a literatura que analisa o impacto da crise financeira no reconhecimento de imparidades em ativos não financeiros e, em particular, em contexto de maior fragilidade financeira, bem como para a literatura sobre o uso da discricionariedade no reconhecimento de imparidades na prática de gestão de resultados. Contribui também para o debate teórico relativo aos princípios da mensuração em contexto de imparidade, e como este pode afetar a avaliação dos valores econômicos dos ativos não financeiros.Palavras-chave – Crise financeira; empresas europeias cotadas; imparidades de ativos não financeiros; gestão de resultados.FECAP2021-06-29info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionAvaliado por paresapplication/pdfapplication/pdfhttps://rbgn.fecap.br/RBGN/article/view/410810.7819/rbgn.v23i2.4108Review of Business Management; Vol. 23 No. 2 (2021); 370-387RBGN Revista Brasileira de Gestão de Negócios; Vol. 23 Núm. 2 (2021); 370-387RBGN - Revista Brasileira de Gestão de Negócios; v. 23 n. 2 (2021); 370-3871983-08071806-4892reponame:Revista Brasileira de Gestão de Negócios (Online)instname:Fundação Escola de Comércio Álvares Penteado (FECAP)instacron:FECAPengporhttps://rbgn.fecap.br/RBGN/article/view/4108/pdfhttps://rbgn.fecap.br/RBGN/article/view/4108/pdf_1Copyright (c) 2021 Review of Business Managementinfo:eu-repo/semantics/openAccessGaio, CristinaGonçalves, TiagoPereira, Anabela2021-07-20T22:26:46Zoai:ojs.emnuvens.com.br:article/4108Revistahttp://rbgn.fecap.br/RBGN/indexhttps://rbgn.fecap.br/RBGN/oai||jmauricio@fecap.br1983-08071806-4892opendoar:2021-07-20T22:26:46Revista Brasileira de Gestão de Negócios (Online) - Fundação Escola de Comércio Álvares Penteado (FECAP)false |
dc.title.none.fl_str_mv |
Financial Crisis and Impairment Recognition in Non-Financial Assets Crise financeira e o reconhecimento das imparidades em ativos não financeiros |
title |
Financial Crisis and Impairment Recognition in Non-Financial Assets |
spellingShingle |
Financial Crisis and Impairment Recognition in Non-Financial Assets Gaio, Cristina financial crisis European listed companies non-financial asset impairments earnings management |
title_short |
Financial Crisis and Impairment Recognition in Non-Financial Assets |
title_full |
Financial Crisis and Impairment Recognition in Non-Financial Assets |
title_fullStr |
Financial Crisis and Impairment Recognition in Non-Financial Assets |
title_full_unstemmed |
Financial Crisis and Impairment Recognition in Non-Financial Assets |
title_sort |
Financial Crisis and Impairment Recognition in Non-Financial Assets |
author |
Gaio, Cristina |
author_facet |
Gaio, Cristina Gonçalves, Tiago Pereira, Anabela |
author_role |
author |
author2 |
Gonçalves, Tiago Pereira, Anabela |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Gaio, Cristina Gonçalves, Tiago Pereira, Anabela |
dc.subject.por.fl_str_mv |
financial crisis European listed companies non-financial asset impairments earnings management |
topic |
financial crisis European listed companies non-financial asset impairments earnings management |
description |
Purpose – To analyse the impact of the financial crisis on the recognition of non-financial asset impairments in European listed companies.Theoretical framework – The study explores the impact of the theory of measuring the economic value of non-financial assets on managers’ decisions to recognize impairments, especially in the context of an economic crisis.Design/methodology/approach – Logit and ordinary least squares models were estimated to analyse the probability of recognition and the amount of impairment recognized, respectively, over a 10-year period.Findings – The results show that European companies recognized less impairments during the crisis, including companies in countries that have used external financial aid, suggesting that managers may use impairment recognition as a way of practicing earnings management.Research Practical & Social implications – The results are of interest to several stakeholders, namely: creditors, investors, financial market regulators, entities that prepare and oversee the application of accounting and auditing standards, and ultimately European leaders in terms of structural reforms and investor protection laws.Originality/value – The study contributes to the literature that analyses the impact of the financial crisis on the recognition of impairments in non-financial assets and, in particular, in the context of greater financial fragility. It also contributes to the literature on the use of discretion in the recognition of impairments and earnings management practices. Moreover, it adds to the theoretical debate regarding the principles of measurement in the context of impairment, and how this may affect assessments of the economic values of non-financial assets.Keywords – financial crisis; European listed companies; non-financial asset impairments; earnings management. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-06-29 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Avaliado por pares |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://rbgn.fecap.br/RBGN/article/view/4108 10.7819/rbgn.v23i2.4108 |
url |
https://rbgn.fecap.br/RBGN/article/view/4108 |
identifier_str_mv |
10.7819/rbgn.v23i2.4108 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
https://rbgn.fecap.br/RBGN/article/view/4108/pdf https://rbgn.fecap.br/RBGN/article/view/4108/pdf_1 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2021 Review of Business Management info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2021 Review of Business Management |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
FECAP |
publisher.none.fl_str_mv |
FECAP |
dc.source.none.fl_str_mv |
Review of Business Management; Vol. 23 No. 2 (2021); 370-387 RBGN Revista Brasileira de Gestão de Negócios; Vol. 23 Núm. 2 (2021); 370-387 RBGN - Revista Brasileira de Gestão de Negócios; v. 23 n. 2 (2021); 370-387 1983-0807 1806-4892 reponame:Revista Brasileira de Gestão de Negócios (Online) instname:Fundação Escola de Comércio Álvares Penteado (FECAP) instacron:FECAP |
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Fundação Escola de Comércio Álvares Penteado (FECAP) |
instacron_str |
FECAP |
institution |
FECAP |
reponame_str |
Revista Brasileira de Gestão de Negócios (Online) |
collection |
Revista Brasileira de Gestão de Negócios (Online) |
repository.name.fl_str_mv |
Revista Brasileira de Gestão de Negócios (Online) - Fundação Escola de Comércio Álvares Penteado (FECAP) |
repository.mail.fl_str_mv |
||jmauricio@fecap.br |
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