Real Asset Liquidity and Asset Impairments

  title={Real Asset Liquidity and Asset Impairments},
  author={Bryce Schonberger},
I examine how the presence of a more active (liquid) resale market for real assets influences the likelihood, timeliness, and magnitude of long-lived asset impairments. I find that firms with more liquid real assets are more likely to record an impairment both unconditionally and conditional on a signal of poor performance, consistent with an available resale market providing information useful in estimating fair value for long-lived operating assets. Impairments are more likely in tests using… CONTINUE READING