Curtin University Homepage
  • Library
  • Help
    • Admin

    espace - Curtin’s institutional repository

    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    • espace Home
    • espace
    • Curtin Theses
    • View Item
    • espace Home
    • espace
    • Curtin Theses
    • View Item

    Accounting for acquired goodwill in Australian business combinations: is there value to choose?

    16706_James, K. full.pdf (1.974Mb)
    Access Status
    Open access
    Authors
    James, Kieran E.
    Date
    2005
    Supervisor
    Janice How
    Peter Verhoeven
    Type
    Thesis
    Award
    PhD
    
    Metadata
    Show full item record
    School
    School of Economics and Finance
    URI
    http://hdl.handle.net/20.500.11937/1144
    Collection
    • Curtin Theses
    Abstract

    This research explores the empirical association between takeover bid premium and acquired goodwill, and tests whether the empirical association changes after the passage of approved accounting standard AASB1013: Accounting for Goodwill. AASB1013 mandates capitalization and amortization of acquired goodwill to the profit and loss account, over a maximum time period of 20 years. Using real options and contracting cost frameworks, this study argues that reducing the variety of accounting policy options available to bidder management after an acquisition results in a systematic loss in firm value. An empirical model developed by Robinson and Shane (1990) and Choi and Lee (1991) is used to measure the average effect on bid premiums of the mandatory change in accounting rule, after controlling for a range of confounding variables including mode of payment, managerial share ownership, and bidder prior share ownership. Based on a final sample consisting of 127 pre-AASB1013 bids and 134 post-AASB1013 bids, the results show that the goodwill accounting rule contained in AASB1013 significantly reduces both the mean and median level of bid premium and the strength of the association between acquired goodwill and bid premium.

    Related items

    Showing items related by title, author, creator and subject.

    • The value relevance and reliability of reported goodwill and identifiable intangible assets
      Dahmash, F.; Durand, Robert; Watson, J. (2009)
      We examine the value relevance and reliability of reported goodwill and identifiableintangible assets under Australian GAAP from 1994 to 2003; a period characterised byrelatively restrictive accounting treatment for ...
    • Determining climate change impacts on viticulture in Western Australia
      Barnuud, Nyamdorj Namjildorj (2012)
      Global climate model simulations indicate 1.3°C to 1.8°C increase in the Earth’s average temperature by middle of this century above the 1980 to 1999 average. The magnitude and rate of change of this projected warming is ...
    • Acquisitions may add value to resource companies
      Bartrop, Stephen Bruce (2010)
      Resource acquisitions have added value to resource companies over the past two decades. This stems from the results of this research which has analysed 30 transactions and further reviewed 22 transactions with a total ...
    Advanced search

    Browse

    Communities & CollectionsIssue DateAuthorTitleSubjectDocument TypeThis CollectionIssue DateAuthorTitleSubjectDocument Type

    My Account

    Admin

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Follow Curtin

    • 
    • 
    • 
    • 
    • 

    CRICOS Provider Code: 00301JABN: 99 143 842 569TEQSA: PRV12158

    Copyright | Disclaimer | Privacy statement | Accessibility

    Curtin would like to pay respect to the Aboriginal and Torres Strait Islander members of our community by acknowledging the traditional owners of the land on which the Perth campus is located, the Whadjuk people of the Nyungar Nation; and on our Kalgoorlie campus, the Wongutha people of the North-Eastern Goldfields.