Country-specific drivers of the value relevance of goodwill impairment losses

Alshehabi, Ahmad; Georgiou, George; Alessandro, Sherry J.

doi:10.1016/j.intaccaudtax.2021.100384

Cited by 10 publications

(15 citation statements)

References 82 publications

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“…The resource allocation and management of public sport facilities is a process in which the government and health institutions use the comprehensive analysis method to optimize in response to the adjustment of the expansion of power grid and the soaring number of sport facilities [ 27 ]. The higher the level of resource allocation and management of public sport facilities, the less the amount of data processed by the servers of governments and health institutions and the lower the difficulty of calculation.…”

Section: Discussionmentioning

confidence: 99%

[Retracted] A Spatial Spectrum Estimation Method for Optimization and Improvement of Resource Allocation and Management of Public Sport and Health Facilities

Sun

2022

Journal of Environmental and Public Health

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With the improvement of people’s health awareness, the state increases the construction of public sport facilities, which complicates the allocation and management of resources. The existing spatial spectrum estimation method cannot eliminate the relevant interference data, resulting in duplicate data in the results of resource allocation and management, reducing the accuracy of resource allocation and management. In order to optimize the allocation and management of public sport facilities resources, this study proposes a spatial spectrum estimation method, which is used to deeply tap the potential information in public sport facilities resources and optimize the allocation and management. First, analyze the resources of public sport facilities and put forward the feature vector of allocation and management optimization. Then, use the spatial spectrum estimation method to learn the test samples, get the optimal threshold and weight, and build the resource allocation and management model of public sport facilities. Finally, the accuracy of spatial spectrum estimation method is 98% and the variation range is (0, 10), which is better than the accuracy of the original algorithm is 80% and the variation range is (0, 20). Moreover, change of the spatial spectrum estimation method is smoother, and the correlation between various analyses is better. In unit time, the amount of configuration and management data of spatial spectrum estimation method is higher than that of existing algorithms, which indirectly indicate that the configuration and management time of the spatial spectrum estimation method is short. At the same time, unstructured data account for a large proportion of the data tested this time. Therefore, the accuracy and variation range of the spatial spectrum estimation method is good, which is suitable for the construction of public sport facilities and realizes the optimization of resource allocation and management.

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Section: Discussionmentioning

confidence: 99%

[Retracted] A Spatial Spectrum Estimation Method for Optimization and Improvement of Resource Allocation and Management of Public Sport and Health Facilities

Sun

2022

Journal of Environmental and Public Health

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“…Lang et al (2006) examined whether litigation and regulation environments influence value relevance, finding that similar litigation and regulation environments do not ensure similar earnings quality. Recently, Alshehabi et al (2021) reached a similar conclusions—that is, adopting a litigation perspective, they found that the value relevance of goodwill impairment losses was substantially higher for firms domiciled in countries with high‐level institutional quality versus firms in countries where institutional quality is relatively low. Based on these premises, we propose the following:…”

Section: Research Background Literature Review and Hypothesis Develop...mentioning

confidence: 76%

Value relevance of IFRS 9: The influence of country factors and heterogeneous strengths in the European banking sector

Zampella,

Ferri

2023

Financ Manag Account

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This study focuses on investor reactions to financial instrument recognition and measurement in the banking sector under the new International Financial Reporting Standard (IFRS) 9, Financial Instruments. The research tests the combined value relevance of accounting numbers before and after the mandatory transition to IFRS 9 in Europe. Furthermore, we verify the influence of country factors and heterogeneous strengths on the value relevance of the aforementioned standard. To this end, we adopt a sample consisting of 215 banks listed in Europe, for the years 2015–2020. We find a significant change in the explanatory power of value‐relevance regressions in 2015–2017 compared to 2018–2020. In addition, we find that accounting numbers have incremental value relevance in countries characterized by “good” governance indicators and high heterogeneous strength, namely investors pay attention to the strength of the bank authority. This study makes three main contributions to the literature. First, it complements the IFRS 9 literature by providing new evidence. Second, its insights can be used to support investment decisions. Last, the findings help regulators and standard‐setters to verify the impact of the new measures delineated by the standard.

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“…After the preliminary examination of half-yearly reports, this study examines the value relevance of goodwill items. Previous research has analyzed the value relevance of goodwill in annual reports, and most of these studies confirm the value relevance of goodwill amounts for investors (McCarthy and Schneider, 1995;Jennings et al, 1996;Godfrey and Koh, 2001;Shahwan, 2004;Bugeja and Gallery, 2006;Al Jifri and Citron, 2009;Dahmash et al, 2009;AbuGhazaleh et al, 2012;Alshehabi et al, 2021;Burger and Wen, 2021) and its increasing usefulness following the introduction of the impairment approach (Chalmers et al, 2008;Oliveira et al, 2010;Aharony et al, 2010). It seems interesting to point out the study carried out by Aharony et al (2010) that examines a sample of companies across 14 EU countries.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 87%

The information content of half-yearly goodwill impairment losses: analysis of the European context

Roncagliolo

2023

IJAIM

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Purpose This study aims to contribute to the debate on goodwill accounting by examining the information content of impairment losses recognized in half-yearly reports. Half-yearly reports provide a suitable context to examine the effectiveness of the impairment process. Due to IFRIC 10 requirements, indeed, managers may have incentives to avoid recognizing impairment losses at the interim reporting date. Design/methodology/approach The study adopts an archival approach. Based on the traditional Ohlson’s model (1995), it explores the information content of half-yearly impairment losses in the European context over the period 2007–2017. Findings Findings confirm the relevance of half-yearly reports and suggest that half-yearly impairment losses are significantly associated with stock prices. In particular, investors positively value companies that recognized goodwill impairment losses at the interim reporting date. Research limitations/implications The study contributes to the academic debate on goodwill and the effectiveness of the impairment procedure. In particular, it provides empirical evidence on the recognition of goodwill write-offs when it is possible to avoid the impairment test in the absence of indications of impairment. Practical implications Findings of this study can support the current debate on accounting for goodwill also in the light of the recent proposals of the IASB on the need to improve the effectiveness of the impairment test. Originality/value This study provides original empirical evidence on the goodwill impairment test in half-yearly reports, extending previous research that typically examines this issue in annual reports.

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Country-specific drivers of the value relevance of goodwill impairment losses

Cited by 10 publications

References 82 publications

[Retracted] A Spatial Spectrum Estimation Method for Optimization and Improvement of Resource Allocation and Management of Public Sport and Health Facilities

[Retracted] A Spatial Spectrum Estimation Method for Optimization and Improvement of Resource Allocation and Management of Public Sport and Health Facilities

Value relevance of IFRS 9: The influence of country factors and heterogeneous strengths in the European banking sector

The information content of half-yearly goodwill impairment losses: analysis of the European context

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