Mpanies that reported IoA in their monetary statements between 1981 and 1985. The fourth section indicated, in turn, the determinants of such write-offs. The fifth section from the article focused on the core of that study. Working with an event study methodology, the researchers analyzed the impact of IoA on “company shareholder wealth”. Their study allowed them to decide the good effect from the occurrence of IoA around the price formation of issuers’ securities. Furthermore, the good impact was also noted just before the information and facts was basically released to investors. This recommended some information and facts leak contradicting the existence of semi-strong data efficiency in the capital industry in the United states of america at that time. Within the following years, one particular could see a rise in interest inside the situation by capital market researchers from distinct parts of the planet. Ghicas et al. (1996) analyzed the connection between the annual returns of corporations listed around the Athens Stock Exchange and the tax advantages on the revaluation of fixed assets. The study focused on industrial firms. The authors located that the revaluation of fixed assets had a optimistic effect on money flows from operations, but a unfavorable effect on firms’ returns from revaluation. Elliott and Hanna (1996) attempted to confirm the data content material on the IoA (which they referred to as “special items”). In the analysed period, a rise inside the variety of entities disclosing IoA exceeding 1 of their balance sheet total (5 in 1975, 21 in 1993) was observed. Moreover, they typically occurred inside the type of numerous write-offs. The market capitalization of entities was decreasing once they have been created obtainable, especially when impairment was reported numerous instances. Choi (2008), alternatively, based on the information of more than five thousand circumstances of IoA exceeding 1 in the balance sheet total by South Korean providers, verified the timeliness of recording write-offs. In his opinion, the long-term return on investment in shares of companies reporting impairment depends largely on the timeliness of their disclosures. Moreover, IoA is reported in a significantly less acceptable time relative for the other components that shape economic functionality. Researchers also investigated the market response and the adequacy from the value of data contained in IFRS 1 (Horton and Serafeim 2009). Their study reported statistically important damaging AR for organizations smoothing net profit in minus through the use of IoA. They confirm that managers delayRisks 2021, 9,4 ofthe public disclosure of negative information (including IoA), which in turn is later met with a Tunicamycin In Vitro considerably more negative industry reaction. Hamberg et al. (2011) constructed two stock portfolios that differed inside the recognition of business value in monetary statements. The study involved 226 firms listed on the Stockholm Stock Exchange. They identified that IoA affects above-average returns (Compound 48/80 medchemexpress regardless of decrease earnings). Bowen and Khan (2014), in turn, focused on the reaction of investors in connection together with the implementation of IoA in the banking sector in 2008009. Their audit was conducted within the context of expanding fair value accounting, which was blamed for the aggravation on the economic crisis. Surprisingly, there was a good reaction from investors towards the details around the decline in the recoverable quantity of assets as close to fair value as you possibly can. The outcomes indicate that investors acted as if the potential damaging effects on the then existing impairment.