Goodwill Impairment An Empirical Investigation of Write-Offs under SFAS 142
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...
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| Main Author: | |
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| Format: | Electronic Book Chapter |
| Language: | English |
| Published: |
Bern
Peter Lang International Academic Publishers
2018
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| Series: | Bochumer Beitraege zur Unternehmensfuehrung
70 |
| Subjects: | |
| Online Access: | OAPEN Library: download the publication OAPEN Library: description of the publication |
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| Summary: | 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. |
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| Physical Description: | 1 electronic resource (350 p.) |
| ISBN: | b14014 9783631754986 |
| Access: | Open Access |