Write -Offs and Restructuring Charges: Evidence From SFAS No. 121 and EITF 94 -3 Mandatory Disclosures

100 p.Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2000.The final part of the study presents evidence that the use of questionable restructuring charges is widespread. Further, restructuring accruals are correlated with operating income in the period in which they are paid out, which implies that these payouts may have been more appropriately classified as operating costs of that period. Additional findings are that the market reaction to the announcement of restructurings containing questionable charges is weaker than for restructuring charges in general and management changes and poor earnings increase the likelihood that a firm will take questionable restructuring charges.U of I OnlyRestricted to the U of I community idenfinitely during batch ingest of legacy ETD