Industrial Engineering & Management

Gali Ingber

Publications

• Research Article
  Impaired Asset Management and the Optimal Timing of Write-Down Decisions
  Author(s): Gali Ingber and Avi MessicaGali Ingber and Avi Messica
  
  Asset write-down refers to a reduction of an impaired asset’s value on a firm’s balance sheet. Impaired asset management has attracted much attention since the 2008 credit crunch crisis with respect to regulation, corporate and managerial ethics, capital market response and more. The common approach in past studies of write-downs based the decision-making process on agency-related reasoning. This paper presents a quantitative financial analysis of the optimal write-down timing of an impaired asset under different settings as well different managerial attitudes. We applied a conditional time-averaged value of a firm’s stock price to model the manager’s decision-making process and analyzed the optimal timing of write-down with respect to the capital market as well as management’s expectations. Different exogenous settings of the optimal write-down timing su.. Read More»
  DOI: 10.4172/2169-0316.1000230

  Abstract PDF