Big bath and goodwill impairment
Autor(a) principal: | |
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Data de Publicação: | 2019 |
Outros Autores: | , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/109486 |
Resumo: | Purpose - To analyze the extent to which recognition of impairments in goodwill is associated with periods of negative results before these losses (big bath practices). To determine whether indebtedness and the capital market restrict the recognition of such losses in big bath practices. Design/methodology/approach - Quantitative empirical study based on accounting and market data of companies listed on the Lisbon and Madrid stock exchanges (2007-2015), supported by multivariate regression models estimated using the generalized moments method (system GMM). Findings - Impairment in goodwill is relevant in big bath practices, and there is great discretion in the use of this accrual. It can be concluded that companies adjust to capital market cycles. The positive relationship between the level of indebtedness and the impairment in goodwill suggests that any penalties from creditors do not condition the recognition of the impairments. Originality/value - There is evidence of big bath practices being associated with companies with negative results and of the role of debt and capital markets as explanatory factors of big bath strategies that use impairments in goodwill. |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Big bath and goodwill impairmentBig bathCapital marketGoodwill impairmentIndebtednessBusiness and International ManagementIndustrial relationsStrategy and ManagementPurpose - To analyze the extent to which recognition of impairments in goodwill is associated with periods of negative results before these losses (big bath practices). To determine whether indebtedness and the capital market restrict the recognition of such losses in big bath practices. Design/methodology/approach - Quantitative empirical study based on accounting and market data of companies listed on the Lisbon and Madrid stock exchanges (2007-2015), supported by multivariate regression models estimated using the generalized moments method (system GMM). Findings - Impairment in goodwill is relevant in big bath practices, and there is great discretion in the use of this accrual. It can be concluded that companies adjust to capital market cycles. The positive relationship between the level of indebtedness and the impairment in goodwill suggests that any penalties from creditors do not condition the recognition of the impairments. Originality/value - There is evidence of big bath practices being associated with companies with negative results and of the role of debt and capital markets as explanatory factors of big bath strategies that use impairments in goodwill.NOVA School of Business and Economics (NOVA SBE)RUNGonçalves, CristinaFerreira, LeonorRebelo, EfigénioFernandes, Joaquim Santana2020-12-30T05:04:34Z20192019-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article20application/pdfhttp://hdl.handle.net/10362/109486eng1806-4892PURE: 27079673https://doi.org/10.7819/rbgn.v21i2.3977info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:53:49Zoai:run.unl.pt:10362/109486Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:41:28.030995Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Big bath and goodwill impairment |
title |
Big bath and goodwill impairment |
spellingShingle |
Big bath and goodwill impairment Gonçalves, Cristina Big bath Capital market Goodwill impairment Indebtedness Business and International Management Industrial relations Strategy and Management |
title_short |
Big bath and goodwill impairment |
title_full |
Big bath and goodwill impairment |
title_fullStr |
Big bath and goodwill impairment |
title_full_unstemmed |
Big bath and goodwill impairment |
title_sort |
Big bath and goodwill impairment |
author |
Gonçalves, Cristina |
author_facet |
Gonçalves, Cristina Ferreira, Leonor Rebelo, Efigénio Fernandes, Joaquim Santana |
author_role |
author |
author2 |
Ferreira, Leonor Rebelo, Efigénio Fernandes, Joaquim Santana |
author2_role |
author author author |
dc.contributor.none.fl_str_mv |
NOVA School of Business and Economics (NOVA SBE) RUN |
dc.contributor.author.fl_str_mv |
Gonçalves, Cristina Ferreira, Leonor Rebelo, Efigénio Fernandes, Joaquim Santana |
dc.subject.por.fl_str_mv |
Big bath Capital market Goodwill impairment Indebtedness Business and International Management Industrial relations Strategy and Management |
topic |
Big bath Capital market Goodwill impairment Indebtedness Business and International Management Industrial relations Strategy and Management |
description |
Purpose - To analyze the extent to which recognition of impairments in goodwill is associated with periods of negative results before these losses (big bath practices). To determine whether indebtedness and the capital market restrict the recognition of such losses in big bath practices. Design/methodology/approach - Quantitative empirical study based on accounting and market data of companies listed on the Lisbon and Madrid stock exchanges (2007-2015), supported by multivariate regression models estimated using the generalized moments method (system GMM). Findings - Impairment in goodwill is relevant in big bath practices, and there is great discretion in the use of this accrual. It can be concluded that companies adjust to capital market cycles. The positive relationship between the level of indebtedness and the impairment in goodwill suggests that any penalties from creditors do not condition the recognition of the impairments. Originality/value - There is evidence of big bath practices being associated with companies with negative results and of the role of debt and capital markets as explanatory factors of big bath strategies that use impairments in goodwill. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019 2019-01-01T00:00:00Z 2020-12-30T05:04:34Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/109486 |
url |
http://hdl.handle.net/10362/109486 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
1806-4892 PURE: 27079673 https://doi.org/10.7819/rbgn.v21i2.3977 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
20 application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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