Attribution Locus and the Timeliness of Long-lived Asset Write-downs
Fuente:
arXiv
Gespeichert in:
| Hauptverfasser: | , , , |
|---|---|
| Format: | Preprint |
| Veröffentlicht: |
2025
|
| Schlagworte: | |
| Online-Zugang: | |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| _version_ | 1866909786129301504 |
|---|---|
| author | Chang, Yao-Lin Lin, Chun-Yang Liu, Chi-Chun Ryan, Stephen G. |
| author_facet | Chang, Yao-Lin Lin, Chun-Yang Liu, Chi-Chun Ryan, Stephen G. |
| contents | We examine the relative timeliness with which write-downs of long-lived assets incorporate adverse macroeconomic and industry outcomes versus adverse firm-specific outcomes. We posit that users of financial reports are more likely to attribute adverse firm-specific outcomes to suboptimal managerial actions, which provide managers with more incentive to delay write downs. We provide evidence that, controlling for other incentives to manage earnings, firms record write-downs in the current year that are driven by adverse macroeconomic and industry outcomes during both the current year and the next year, but they record write-downs driven by adverse firm-specific outcomes only in the current year. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2509_10810 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Attribution Locus and the Timeliness of Long-lived Asset Write-downs Chang, Yao-Lin Lin, Chun-Yang Liu, Chi-Chun Ryan, Stephen G. General Finance We examine the relative timeliness with which write-downs of long-lived assets incorporate adverse macroeconomic and industry outcomes versus adverse firm-specific outcomes. We posit that users of financial reports are more likely to attribute adverse firm-specific outcomes to suboptimal managerial actions, which provide managers with more incentive to delay write downs. We provide evidence that, controlling for other incentives to manage earnings, firms record write-downs in the current year that are driven by adverse macroeconomic and industry outcomes during both the current year and the next year, but they record write-downs driven by adverse firm-specific outcomes only in the current year. |
| title | Attribution Locus and the Timeliness of Long-lived Asset Write-downs |
| topic | General Finance |
| url | https://arxiv.org/abs/2509.10810 |