Extension: Assets Write-Down in China: Incentives and the Effect of Corporate Governance
Assets Write-Down in China: Incentives and the Effect of Corporate Governance presents the following source proposition: The results suggest that firms facing financial distress engage in opportunistic asset writing down and reversal to manage earnings. This proposition is pertinent to Kaal's source-bound claim that Where conversion has a negative effect on stock price, management is further incentivized to maintain and manage risk in order to avoid reputational loss and the income reduction caused by losses in stock options. The proposed response is an extension: the relationship should remain limited to the retrieved source proposition and the mapped Kaal claim unless fuller source review supports a broader conclusion.
corporate-governancerisk-and-incentivescontingent-capitalhistorical-responsescholarly-literaturecrossref