Asset revaluation and future firm operating performance: evidence from New Zealand

The regulatory framework of many countries allows the upward revaluation of assets. Previous studies on the association of asset revaluation and future performance in Australia (Barth and Clinch, 1998), U.K. (Aboody, Barth and Kasznik, 1999) and Hong Kong (Jaggi and Tsui, 2001) have shown that upward asset revaluations are positively associated with the firm’s operating performance, suggesting that asset revaluations are value relevant. This study extends the previous research by focusing on the New Zealand environment with recent data to examine the association of upward asset revaluation and future operating performance. There is no obvious evidence indicating that upward revaluations are associated with operating performance in New Zealand. Our market assessments show that current year asset revaluations are related to share prices and returns, but are not statistically significant.

Grantor dc:publisher

Lincoln University

Year dc:date

2007

Author dc:creator

• Zhai, Yong H.

• upward asset revaluation
• operating income
• cash flows from operations
• future operating performance
• Marsden::350100 Accounting, Auditing and Accountability
• Marsden::350200 Business and Management

Language dc:language

en

Identifier

Q112871165

OAI identifier oai:identifier

oai:researcharchive.lincoln.ac.nz:10182/219