How asset revaluation impact asset management? 

Asset revaluation significantly impacts asset management across various dimensions, influencing financial reporting, investor confidence, and strategic decision-making. The revaluation of assets, particularly in the public sector, has been shown to result in an appreciation of fixed assets, notably land, thereby affecting the value of fixed assets on government balance sheets and encouraging improvements in asset administration and management. This process necessitates ongoing supervision and control to optimize asset function and enhance state revenues. Similarly, in the corporate sector, asset revaluation decisions are influenced by factors such as firm size and macro-economic policy environment, with significant effects on firm performance. The practice also has implications for the transparency and timeliness of financial reporting, as it can decrease stock price crash risk by improving the relevance of disclosed information, although this benefit varies with the firm's financial health and information asymmetry. Moreover, asset revaluation is associated with higher discretionary accruals, indicating potential earnings management and reflecting higher agency problems. This suggests that revaluation decisions might be driven by managerial incentives to present a more favorable financial position. This perspective is supported by findings that companies often revalue assets to enhance investor confidence and sustain company viability, particularly in entrepreneurial ventures. However, the quality of the revaluation process and the expertise of valuation professionals are critical to ensuring reliable outcomes and avoiding distorted financial representations. The motivation behind asset revaluation can also stem from strategic financial management, such as influencing net asset value and debt-to-equity ratios to manage political costs and debt covenants. In emerging markets like Pakistan, management incentives for asset revaluation include reducing contracting and political costs, although the effectiveness of these strategies varies. Finally, the decision to revalue assets can be influenced by fiscal policies, with companies often aiming to minimize tax liabilities, thereby affecting financial ratios and stakeholders' perception of the company's financial health. Overall, asset revaluation plays a crucial role in asset management by impacting financial metrics, regulatory compliance, and strategic financial planning.

Revaluation of Non-Current Assets Under IAS-16: Possibility of Any Managerial Inducement: Evidence From a South Asian Economy

Asset revaluation impacts asset management by influencing firm size, intensity ratio, and stock dividend declaration, leading to continual revaluation of non-current assets to strengthen financial position and prospects.

Can asset revaluation be manipulative? - a case study

Asset revaluation can impact asset management by influencing financial ratios, leverage ratios, solvency, and equity. The decision to revalue assets can affect a company's financial position and perception.

Does Fixed Assets Revaluation Create Avenues for Financial Numbers Game? Evidence from a Developing Country

Asset revaluation, specifically fixed asset revaluation, significantly impacts net asset value (NAV), fixed asset intensity (FAI), and debt-to-equity ratio (DER), indicating a potential avenue for financial manipulation in asset management.

Management Motives Behind the Revaluation of Fixed Assets for Sustainability of Entrepreneurial Companies

Asset revaluation impacts asset management by improving financial position, satisfying investors, generating more funds, enhancing sustainability, and reducing debt costs for entrepreneurial companies.

FROM ACCOUNTING REGULATIONS TO VALUATION PRACTICE - THE APPRAISER’S ROLE IN TANGIBLE ASSETS’ REVALUATION

Asset revaluation impacts asset management by influencing equity, profit, and financial indicators, crucial for investor and management decisions. Appraisers play a key role in ensuring reliable revaluation processes.

Asset revaluations and earnings management: Evidence from Australian companies

Asset revaluations are positively linked to earnings management, indicating higher agency problems. Internal appraisals lead to more discretionary accruals than external appraisals, while auditors and governance can mitigate opportunistic behavior.

Asset revaluations and earnings management: Evidence from Australian companies

Asset revaluations are positively linked to earnings management, indicating higher agency issues. Firms using internal appraisers show more discretionary accruals, while auditors and governance can limit managerial opportunism.

Does Fixed Asset Revaluation Build Trust between Management and Investors

Fixed asset revaluation impacts asset management by improving transparency, reducing stock price crash risk, and influencing management's honesty and motivation during the revaluation process.

Evidence from south african construction and industrial transportation businesses on asset revaluation

Asset revaluation impacts asset management by influencing firm performance, firm size, and leverage decisions, but does not significantly affect the revalued asset's relationship with other variables.