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In 2001, goodwill amortization in the US was eliminated in favor of an impairment-only approach, which, according to critics, gives managers vast discretion and opportunities for earnings management. Prior research suggests that discretionary asset write-offs are associated with economic factors and managers’ financial reporting objectives. Based on a systematic literature review, this study investigates for a comprehensive sample of US firms the determinants of goodwill write-off behavior. Regression analysis shows that write-off behavior is significantly explained by firms’ economic properties. Only in large, high-profile firms, incentives appear to be significant determinants. These findings suggest that the impairment-only approach does capture goodwill impairment at least to some extent.
Nákup knihy
Goodwill impairment, Thorsten Sellhorn
- Jazyk
- Rok vydania
- 2004
Doručenie
Platobné metódy
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- Titul
- Goodwill impairment
- Jazyk
- anglicky
- Autori
- Thorsten Sellhorn
- Vydavateľ
- Lang
- Vydavateľ
- 2004
- Väzba
- mäkká
- ISBN10
- 3631527071
- ISBN13
- 9783631527078
- Kategórie
- Skriptá a vysokoškolské učebnice
- Anotácia
- In 2001, goodwill amortization in the US was eliminated in favor of an impairment-only approach, which, according to critics, gives managers vast discretion and opportunities for earnings management. Prior research suggests that discretionary asset write-offs are associated with economic factors and managers’ financial reporting objectives. Based on a systematic literature review, this study investigates for a comprehensive sample of US firms the determinants of goodwill write-off behavior. Regression analysis shows that write-off behavior is significantly explained by firms’ economic properties. Only in large, high-profile firms, incentives appear to be significant determinants. These findings suggest that the impairment-only approach does capture goodwill impairment at least to some extent.