Did the goodwill accounting standard impose material economic consequences on Australian acquirers?
Article
Article Title | Did the goodwill accounting standard impose material economic consequences on Australian acquirers? |
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ERA Journal ID | 19059 |
Article Category | Article |
Authors | James, Kieran (Author), How, Janice (Author) and Verhoeven, Peter (Author) |
Journal Title | Accounting and Finance |
Journal Citation | 48 (4), pp. 625-647 |
Number of Pages | 23 |
Year | 2008 |
Publisher | John Wiley & Sons |
Place of Publication | Australia |
ISSN | 0810-5391 |
1467-629X | |
Digital Object Identifier (DOI) | https://doi.org/10.1111/j.1467-629x.2007.00246.x |
Web Address (URL) | http://www3.interscience.wiley.com/cgi-bin/fulltext/120174085/PDFSTART |
Abstract | This research explores the empirical association between takeover bid premium and acquired (purchased) goodwill, and tests whether the strength of the association changes after the passage of approved accounting standard AASB 1013 in Australia in 1988. AASB 1013 mandated capitalization and amortization of acquired goodwill to the income statement over a maximum period of 20 years. We use regressions to assess how the association between bid premium and acquired goodwill varies in the pre-AASB and post-AASB 1013 periods after controlling for confounding factors. Our results show that reducing the variety of accounting policy options available to bidder management after an acquisition |
Keywords | accounting choice; bid premium; intangible assets; purchased goodwill; signalling theory |
ANZSRC Field of Research 2020 | 350101. Accounting theory and standards |
350711. Organisational planning and management | |
480699. Private law and civil obligations not elsewhere classified | |
Public Notes | File reproduced in accordance with the copyright policy of the publisher/author. |
Byline Affiliations | School of Accounting, Economics and Finance |
University of Auckland, New Zealand |
https://research.usq.edu.au/item/9z41q/did-the-goodwill-accounting-standard-impose-material-economic-consequences-on-australian-acquirers
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