Determinants of Exercising Discretion in Goodwill Impairment Decisions by Listed Companies

被引：0
|
作者：
Xiao M. [1 ]
Yang S. [1 ]
机构：
[1] School of Economics and Management, University of Science and Technology Beijing, Beijing
来源：
Tongji Daxue Xuebao/Journal of Tongji University | 2021年 / 49卷 / 09期
关键词：
Accounting standard; Discretion; Goodwill; Goodwill impairment;
D O I：
10.11908/j.issn.0253-374x.21119
中图分类号：
学科分类号：
摘要：
This study examines the determinants of goodwill impairment decisions, focusing on the exercising of discretion in goodwill impairment decisions by Chinese listed companies. Fixed-effect logistical regression findings indicate that incidence of goodwill impairment is negatively associated with a company's operating cash-flow volatility, and the companies with stable profitability have higher incidence of goodwill impairment. In addition, goodwill impairment decisions in high goodwill balance companies or non-state-owned companies tend to be more responsive to operating cash-flow volatility and stability of profitability; Compared with the first 6 years after the adaption of the Accounting Standards for Enterprises No.8-Impairment of Assets, the incidences of goodwill impairment are more significantly associated with operating cash-flow volatility and stability of profitability in the second 6 years. These evidences suggest that discretion is exercised opportunistically by listed companies according to their operating and profitable status when making goodwill impairment decisions. © 2021, Editorial Department of Journal of Tongji University. All right reserved.
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页码：1345 / 1352
页数：7
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