Causes and Consequences of Transitional Goodwill Impairment Losses: Evidence from Canada

Lapointe-Antunes, Pascale

ISBN 10: 3838353692 / ISBN 13: 9783838353692

Verlag: LAP LAMBERT Academic Publishing, 2010

Beschreibung

New.

Bestandsnummer des Verkäufers ERICA82938383536926

Bibliografische Details

• Titel: Causes and Consequences of Transitional Goodwill Impairment Losses: Evidence from Canada
• Verlag: LAP LAMBERT Academic Publishing
• Erscheinungsjahr: 2010
• Sprache: Englisch
• ISBN-10: 3838353692
• ISBN-13: 9783838353692
• Einband: paperback
• Zustand: New
• Buchtyp: book

Über diesen Titel

Inhaltsangabe

This dissertation investigates the causes and consequences of the goodwill reporting choices made by Canadian firms following the adoption of revised standards on purchased goodwill in 2002. First, I show that transitional goodwill impairment losses are associated with managers' incentives to both overstate and understate them. Furthermore, independent board of directors and audit committees act as a constraint on Canadian managers' goodwill reporting choices to ensure that the economic value of goodwill is better reflected in financial statements. Second, I show that investors perceive goodwill as an asset, and goodwill impairment losses as sufficiently reliable measurements of a reduction in the value of goodwill to incorporate them in their valuation assessments. Finally, I show that transitional goodwill impairment losses were impounded in stock prices prior to 2002. Overall, the empirical evidence contained in the dissertation is consistent with SFAS 142/Section 3062 improving the quality of the financial information on goodwill provided in the financial statements.