Goodwill Impairment : An Empirical Investigation of Write-Offs under SFAS 142
Sellhorn, Thorsten
Goodwill Impairment : An Empirical Investigation of Write-Offs under SFAS 142 - Bern Peter Lang International Academic Publishing Group 2018 - 1 electronic resource (350 p.)
Open Access
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.
Creative Commons
English
b14014
10.3726/b14014 doi
Accounting: study & revision guides
Budgeting & financial management
Bilanzpolitik Empirical Firmenwert Generally Accepted Accounting Principles Geschäftswert Goodwill Goodwill Impairment Impairment Investigation Offs Sellhorn SFAS under USA US-GAAP Wertberichtigung Write
Goodwill Impairment : An Empirical Investigation of Write-Offs under SFAS 142 - Bern Peter Lang International Academic Publishing Group 2018 - 1 electronic resource (350 p.)
Open Access
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.
Creative Commons
English
b14014
10.3726/b14014 doi
Accounting: study & revision guides
Budgeting & financial management
Bilanzpolitik Empirical Firmenwert Generally Accepted Accounting Principles Geschäftswert Goodwill Goodwill Impairment Impairment Investigation Offs Sellhorn SFAS under USA US-GAAP Wertberichtigung Write