An Examination of Value Relevance of Assets Impairment Based on the Loss Listed Companies

In this paper, the value relevance of asset impairment of the loss listed companies is studied. The study shows: in total, the value relevance of the accounting earnings of the loss listed companies is enhanced after the allocation of impairment of asset reserves. The impairment reserves data itself has value relevance. Meanwhile,this paper find that the value relevance of accounting earnings of the loss listed companies in the loss year is less than that in profitable year; the accounting information in profitable year is more useful for investors.