Economic consequences of SFAS 142 goodwill write‐offs

Henry Jarva

22 citations0/0 files storedAccounting and Finance

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Corporate Finance and Governance Accounting Theory and Financial Reporting

Abstract

Abstract This paper examines the economic consequences of goodwill write‐offs under Statement of Financial Accounting Standards No. 142 (SFAS 142). Although write‐off firms have performed poorly, it is evident that deteriorating economic performance explains only a small proportion of write‐offs. After controlling for endogeneity of write‐off choice, I fail to find evidence that investors and analysts fixate on SFAS 142 goodwill write‐offs. I also provide evidence that write‐off firms pay higher audit fees, suggesting that auditors charge higher fees in response to extra audit effort. These results are consistent with the principles of market efficiency, analyst‐forecast rationality and efficient audit pricing.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 22 citations exist upstream.

References

1997The conservatism principle and the asymmetric timeliness of earnings1 2003Conservatism in Accounting Part I: Explanations and Implications 1996Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future Earnings?1997Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings?2004PE Ratios, PEG Ratios, and Estimating the Implied Expected Rate of Return on Equity Capital 2001The relevance of the value-relevance literature for financial accounting standard setting 2001Do Analysts and Auditors Use Information in Accruals?1996Causes and Effects of Discretionary Asset Write-Offs

Cited by

2020The potential harms of goodwill impairment avoidance: Evidence based on future performance and stock prices

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.