臺大管理論叢 NTU Management Review VOL.29 NO.1

Earnings Informativeness of Long-Lived Assets Impairment Recognized and Reversals 232 Table 7 Results of Assets Impairment Recognized and Reversals in Earnings Informativeness---CAR Model Examination CAR t = β 0 + β 1 X t + β 2 IM t + β 3 IM t *X t + β 4 LEV t + β 5 MB t + β 6 SIZE t + ε t CAR t = β 0 + β 1 X t + β 2 IM t + β 3 IM t *X t + β 4 REV t + β 5 REV t *IM t *X t + β 6 LEV t + β 7 MB t + β 8 SIZE t + ε t Model IM model REV model Variables β β ( t -value) β ( t -value) Constant β 0 0.316 (0.45) 0.318 (0.46) X t β 1 1.134 a (7.95) 1.134 a (7.92) IM t β 2 -1.554 (-1.53) -1.550 (-1.60) IM t *X t β 3 -9.282 a (-2.77) -10.258 a (-3.14) REV t ---/β 4 0.017 (0.41) REV t *IM t *X t ---/β 5 18.903 (1.58) LEV t β 4 /β 6 -0.062 (-0.35) -0.058 (-0.33) MB t β 5 /β 7 0.340 a (13.76) 0.340 a (13.80) SIZE t β 6 /β 8 -0.055 (-1.24) -0.055 (-1.24) Year Effect --- Included Included β 3 +β 5 8.645 (0.65) N 7,401 7,401 Adj R 2 37.47% 37.49% F -statistic 4.65 a 4.65 a Hausman test 952.20 a 953.53 a Legends: 1. CAR t : X t : a firm’s earnings per share excluding extraordinary items in year t , deflated by the stock price at the beginning of year t . IM t : a firm’s magnitude of long-lived assets impairment loss recognized in year t , deflated by the total assets at the beginning of year t . REV t : the dummy variable of the reversing assets impairment loss; REV is denoted as one if the firms recognizing assets impairment loss and reversing immediately in the following year, otherwise 0. LEV t : a firm’s leverage measured as total debts divided by total assets of the sample firms at the end of the fiscal year. MB t : a firm’s market-to-book ratio measured as the market value of equity divided by book value of equity at the end of the fiscal year. SIZE t : a firm’s size measured by the natural logarithm of book value of total assets at the end of the fiscal year. 2. “a”, “b” and “c” denote the significance on 1%, 5% and 10% levels respectively, based on two- tailed tests.