Overpaid acquisitions and goodwill impairment losses — Evidence from the US

Maria Elena Olante

Advances in accounting, 2013, vol. 29, issue 2, 243-254

Abstract: The purpose of this study is to shed light on the reliability of accounting goodwill numbers by examining whether many goodwill impairment losses arise from overpayment for the target at the time of the acquisition, rather than from a subsequent deterioration of goodwill values. A second related objective is to assess whether the goodwill impairment test introduced by SFAS 142 improved the ability of accounting standards to timely capture situations in which the amount of goodwill is overstated and should thus be written down.

Keywords: Goodwill; Impairment; Merger and acquisitions; SFAS 141; SFAS 142; Reliability (search for similar items in EconPapers)
JEL-codes: G34 M41 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:advacc:v:29:y:2013:i:2:p:243-254

DOI: 10.1016/j.adiac.2013.09.010

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