DESIGN OF AN ECONOMETRIC MODEL FOR EVALUATION O GOODWILL FOR COMPANIES LISTED ON REGULATED MARKETS

Veronica Grosu () and Tabita Cirdei
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Veronica Grosu: Stefan cel Mare University of Suceava, 720229, Romania
Tabita Cirdei: Stefan cel Mare University of Suceava, 720229, Romania

European Journal of Accounting, Finance & Business, 2022, vol. 10, issue 2, 18-28

Abstract: Goodwill is one of the most complex and unclear concepts in financial accounting. It is uncertain what it represents as an asset, it is recognized only in the situation of business combinations and it is subject of depreciation. The aim of this paper is to analyze the causes that determined the significant increase in the importance of intangible assets and especially goodwill in the success of a business and in increasing its global value. The objectives of the research are focused on: highlighting the difference between internally generated goodwill and purchased goodwill; on determining the reasons behind the existence of such controversial opinions regarding the recognition and valuation of goodwill; identifying how goodwill contributes to the deepening of the quantitative difference between the market value and the book value of a company; determining the impact of not presenting goodwill in financial reporting. The obtained results consist in establishing the dependency relationship between goodwill and Insider Holdings, R&D, Capitalized R&D as % of Invested Capital and EV/EBITDA.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:scm:ejafbu:v:10:y:2022:i:2:p:18-28

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