Record Details

Goodwill and accounting discretion

Scholedge International Journal of Management & Development

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Field Value
 
Title Goodwill and accounting discretion
 
Creator Bisogno, Marco; Associate Professor (Accounting)
Department of Management & Innovation Systems, University of Salerno: Fisciano (SA).
 
Subject —
Goodwill; impairment test; earnings management; accounting discretion; discretionary accruals
Accounting
 
Description Purpose: The aim of the paper is to investigate earnings management practices related to goodwill accounting, focusing on its first recognition as well as its write-offs, due to the impairment test.Design/methodology/approach: The study refers to a sample of Italian listed firms and the analysis covers three years, with a total of 591 firm-year observations. The modified Jones’ regression model has been used in estimating discretionary accruals, as a proxy of earnings management practices.Findings: A positive relationship between discretionary accruals and yearly changes in goodwill has been proved. Findings also show an incidence of leverage and performance.Research limitations/implications: The study focuses on a single context (Italy) and it is essentially based on financial-economic variables.Practical implications: Findings of the study could be relevant for standard-setters in future revisions of goodwill accounting.Social implication: The study could support investors in evaluating the incidence of first recognition as well as goodwill impairment on the quality of earnings.
 
Publisher Scholedge R&D Center
 
Contributor —
 
Date 2015-11-09
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
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Format application/pdf
 
Identifier http://www.thescholedge.org/index.php/sijmd/article/view/244
10.19085/journal.sijmd021002
 
Source Scholedge International Journal of Management & Development ISSN 2394-3378; Vol 2, No 10 (2015); 9-22
2394-3378
 
Language eng
 
Relation http://www.thescholedge.org/index.php/sijmd/article/view/244/346
 
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Rights Copyright (c) 2015 Scholedge International Journal of Management & Development ISSN 2394-3378
http://creativecommons.org/licenses/by-nc/4.0