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The value relevance of goodwill and its disclosure for companies listed on the JSE
Thesis (PhD)--University of Pretoria 2020.
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| Format: | Thesis |
| Language: | en_US |
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University of Pretoria
2021
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| _version_ | 1867613435018084352 |
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| access_status_str | Open Access |
| author2 | Hall, J.H. (John Henry) |
| author_browse | Hall, J.H. (John Henry) |
| author_facet | Hall, J.H. (John Henry) |
| collection | Thesis |
| dc_rights_str_mv | © 2019 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Thesis (PhD)--University of Pretoria 2020. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/79025 |
| institution | University of Pretoria (South Africa) |
| language | en_US |
| last_indexed | 2026-06-10T12:36:05.775Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/79025 The value relevance of goodwill and its disclosure for companies listed on the JSE Hall, J.H. (John Henry) elmarie.louw@up.ac.za Brummer, L.M., 1940- Louw, Elmarie UCTD Thesis (PhD)--University of Pretoria 2020. The value relevance of goodwill is a topic of ongoing discussion in accounting, because of the nature of this intangible asset, and changes in the accounting standards regarding the disclosure of goodwill and goodwill impairment. International Financial Reporting Standard (IFRS) 3 was implemented in March 2004 with the aim of improving the reliability of goodwill accounting, introducing a major change, namely the requirement to test annually for goodwill impairment. The aim of this study was to determine the value relevance of goodwill after the introduction of IFRS 3 in a specific setting, namely South Africa, using JSE-listed firms as a sample. It also investigated the determinants for both goodwill impairment decisions and the disclosure quality of goodwill impairments, as well as the value relevance of goodwill impairment and its disclosure. Finally, the study considered the explanation strategies used by management to provide reasons for goodwill impairment. Panel least squares regressions and a cluster analysis were used to analyse JSE-listed firms for the period from 2006 to 2017. The findings show that goodwill is indeed value relevant. Significant predictors of goodwill impairment were found to be potential earnings management, whether a firm was goodwill intensive, and corporate governance mechanisms. Goodwill impairment in itself was not value relevant, but it was a predictor of market value when its disclosure was taken into account. Findings indicated that goodwill impairment test-related disclosure was negatively associated with a firm’s market value. Firms that provided an excuse for impairing goodwill, without taking responsibility for that impairment, tended to have higher quality of disclosure than firms that did not provide any reason for goodwill impairment at all. The study contributes to the existing literature by presenting evidence that goodwill is value relevant in the South African setting after the introduction of IFRS 3, and that when investors determine a firm’s market value, investors simultaneously assess goodwill impairment and its disclosure. How reasons for impairment are provided by management also provides insight into the quality of goodwill impairment disclosure. Financial Management PhD Unrestricted 2021-03-23T07:13:52Z 2021-03-23T07:13:52Z 2021-04 2020 Thesis Louw, E 2020, The value relevance of goodwill and its disclosure for companies listed on the JSE, PhD Thesis, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/79025> A2020 http://hdl.handle.net/2263/79025 en_US © 2019 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD The value relevance of goodwill and its disclosure for companies listed on the JSE |
| title | The value relevance of goodwill and its disclosure for companies listed on the JSE |
| title_full | The value relevance of goodwill and its disclosure for companies listed on the JSE |
| title_fullStr | The value relevance of goodwill and its disclosure for companies listed on the JSE |
| title_full_unstemmed | The value relevance of goodwill and its disclosure for companies listed on the JSE |
| title_short | The value relevance of goodwill and its disclosure for companies listed on the JSE |
| title_sort | value relevance of goodwill and its disclosure for companies listed on the jse |
| topic | UCTD |
| url | http://hdl.handle.net/2263/79025 |