In this study we investigate the stock price responses on different event dates in relation to specific companies and their stock reactions to announcements of accounting for impairment of assets. After applying a 3-factor model, the seemingly unrelated regression model and regression analysis, we find the following: (1) the cumulative abnormal returns are significantly negative on the date of the draft SFAS No. 35 announcement- event date one, but they are significantly positive on the date of the SFAS No. 35 announcement- event date two; (2) companies with more specific assets (long-term equity investment and fixed assets) are more affected by the SFAS No. 35, especially those with good corporate governance mechanisms; (3) the cumulative abnormal returns are positively related to the amount of free cash flow, especially those with bad corporate governance mechanisms.