Determinants of impairment test loss recognition

Authors

DOI:

https://doi.org/10.21680/2176-9036.2020v12n2ID19759

Keywords:

Impairment Test, loss recognition determinants, discretion.

Abstract

Purpose: verify which determinants influence the recognition of the Impairment Test (IT) loss recognition in Brazilian companies listed in B3.

Methodology: The research was performed with 169 non-financial companies listed in B3, which may or may not have presented information of IT loss, in the analysis period from 2009 up to 2017. To test the hypotheses of this research, the logit model was applied. In order to avoid the outliers problem, which may affect the estimated coefficients, all variables were winsorized in 1% in each side of their distribution. The results, however, with and without winsorization were mantained in order to attest to the consistency of the findings. The standard errors were clusterized, so as to avoid autocorrelation problems in the model’s residual data.

Results: It was noticed that the Return on Equity, the Book-to-Market index, Management Change, Big Bath and Property Control were considered influential determinants on IT loss recognition in the companies listed in B3.

Contributions of the Study: The study brings forth practical justifications for IT appliability, offering importante accounting information for managers, investors, accounting professional, policy and rule makers. From a theoretical point of view it contibutes to the literature on determinant factors for IT loss of actives.

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Author Biographies

Karla Roberta Castro Pinheiro Alves, Universidade Estadual da Paraíba - UEPB

Doutora em Ciências Contábeis pelo Programa de Pós-Graduação em Ciências Contábeis da Universidade de Brasília. Professora do Departamento de Contabilidade da Universidade Estadual da Paraíba - UEPB, Campus I.

César Augusto Tibúrcio Silva, Universidade de Brasília

Doutor em Controladoria e Contabilidade pela Universidade de São Paulo, Professor do Departamento de Ciências Contábeis da Universidade de Brasília, Campus Universitário Darcy Ribeiro, Faculdade de Economia, Administração e Contabilidade – Prédio da FACE – Asa Norte

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Published

01-07-2020

How to Cite

CASTRO PINHEIRO ALVES, K. R.; TIBÚRCIO SILVA, C. A. Determinants of impairment test loss recognition. REVISTA AMBIENTE CONTÁBIL - Universidade Federal do Rio Grande do Norte, [S. l.], v. 12, n. 2, p. 112–135, 2020. DOI: 10.21680/2176-9036.2020v12n2ID19759. Disponível em: https://periodicos.ufrn.br/ambiente/article/view/19759. Acesso em: 23 jul. 2024.

Issue

Vol. 12 No. 2 (2020): Jul./Dez.

Section

Section 1: Accounting Applied to the Business Sector (S1)

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