DISCUSSION.

The article presents a response to the paper "Asset Writedowns: Managerial Incentives and Security Returns," by John S. Strong and John R. Meyer. The author discusses the interpretation that the research findings are indicative of the failure of semi-strong form market efficiency. He also cites evidence supporting the notion that asset writedowns are a signal of economic value-enhancing corporate restructuring in the near future. The author also considers what a sequel to the original paper should address.