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- Title
A Risk Assessment of Intangible Asset Valuation: The Post-Hoc Association between Goodwill Impairments and Risk Hazards in Mergers and Acquisitions.
- Authors
Lohrey, Peter L.; DiGabriele, James A.; Nicholson, Joseph
- Abstract
We tested whether the change from SFAS 141 to SFAS 141r/ASC 805 had any effect on restatements due to goodwill impairment. Our findings suggest that the implementation of SFAS 141r increased the likelihood of a financial restatement by 2.5 times. Board of Director and Audit Committee involvement in the goodwill impairment decision reduced the likelihood of a restatement occurring. Service industry companies were 3.2 times more likely to restate their assets due to goodwill impairment. Companies who were audited by a Big4 firm reduced the odds of restatement by 47%.
- Subjects
VALUATION of intangible property; RISK assessment; MERGERS &; acquisitions; GOODWILL (Commerce); FINANCIAL statements; SERVICE industries
- Publication
American Journal of Management, 2017, Vol 17, Issue 1, p34
- ISSN
2165-7998
- Publication type
Article