Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
What determines the amount of reported goodwill impairment?: An investigation of Nasdaq Stockholm OMX (OMXS)
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
2018 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Background: The question on how to account for goodwill has long been a subject that causes big debates among actors within financial accounting. In 2004, the IASB released a new standard, IFRS 3 – Business Combinations, that changed the accounting for goodwill. The interpretation for goodwill impairments according to IAS 36 has led to findings in studies that show patterns of earnings management and that a possible gap exists between the standard setter’s basic aim of IAS 36 and what actually is done by the practitioners.

Purpose: Examine what determines the amount of reported goodwill impairment for firms listed on the Nasdaq OMX Stockholm (OMXS).

Method: To fulfil the purpose of the thesis, the authors takes a quantitative research approach by a using a multiple linear regression model. The regression model is based on proxies for economic impairment, earnings management and corporate governance mechanisms from previous literature (Stenheim & Madsen, 2016; AbuGhazaleh, Al-Hares, & Roberts, 2011; Riedl, 2004). The data used for the regression model has been collected from published annual reports of 69 firms listed on the Nasdaq Stockholm OMX (OMXS), between the years 20072016.

Conclusion: The findings of the thesis show that the accounting behaviour of “Big Bath” is exercised for firms listed on the Nasdaq Stockholm OMX (OMXS). The proxies for economic impairment have, to some extent, an impact on the amount of reported goodwill impairment, but the majority of the proxies for corporate governance mechanisms does not affect the amount of reported goodwill impairment. These findings might suggest that the standard IAS 36, which regulates the accounting for goodwill, may not entirely fulfil its purpose of creating a more transparent financial reporting. 

Place, publisher, year, edition, pages
2018. , p. 55
Keywords [en]
Goodwill Impairment, IFRS 3, IAS 36, Economic Impairment, Earnings Management, Corporate Governance, Big Bath, Income Smoothing, Gender Diversity
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-39539ISRN: JU-IHH-FÖA-2-20180555OAI: oai:DiVA.org:hj-39539DiVA, id: diva2:1210331
Subject / course
IHH, Business Administration
Supervisors
Examiners
Available from: 2018-05-30 Created: 2018-05-28 Last updated: 2018-05-30Bibliographically approved

Open Access in DiVA

fulltext(758 kB)17 downloads
File information
File name FULLTEXT01.pdfFile size 758 kBChecksum SHA-512
8b8ebbf28aa7f869c71cf1099ba18220de0241f9581d327a95958e04937668da3118f263c451a80a28cddaf0595828cece502c6a3a7d89e6c32eda2ab7fdfb9d
Type fulltextMimetype application/pdf

By organisation
JIBS, Business Administration
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 17 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 71 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf