Goodwill impairment, economic policy uncertainty and CEO overconfidence

Dépréciations du goodwill: impacts de l’incertitude de la politique économique et de l’excès de confiance des dirigeants

Amal Hsissou and Frédéric Romon ()
Additional contact information
Frédéric Romon: LUMEN - Lille University Management Lab - ULR 4999 - Université de Lille

Post-Print from HAL

Abstract: Goodwill impairment has sparked debate since its introduction over its discretionary nature. While previous studies have explored the factors affecting goodwill impairments, they mainly focused on firm-level determinants, often ignoring economy-wide factors. Our research fills this gap by examining the relation between economic policy uncertainty (EPU) and goodwill impairment; while also analyzing the influence of CEO overconfidence, as overconfident executives tend to exhibit excessive optimism in uncertain scenarios. Using a sample of US listed firms from 2003 to 2020, we find that higher EPU leads to increased goodwill impairment. However, this effect is mitigated by overconfident CEOs, even when firms perform poorly and face prolonged EPU.

Keywords: economic policy uncertainty; overconfidence.; CEO; uncertainty; goodwill impairment; Goodwill; surconfiance.; PDG; incertitude économique et politique; incertitude; dépréciation; Ecart d’acquisition (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Published in Finance Contrôle Stratégie, inPress

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05495492

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().