Usefulness of goodwill impairment under SFAS No. 142 in reflecting the relative efficiency of firms

Scope and Method of Study: This study examines goodwill impairment under SFAS No. 142 whether it improves financial reporting quality by better reflecting the underlying relative efficiency of a firm. A firm's relative efficiency is measured by using Data Envelopment Analysis (DEA). The analysis is undertaken on three selected industries--durable manufacturers, computers, and services. First, Wilcoxon rank sum tests are used to compare the efficiency of a firm with other firms in the same industry (the cross-sectional analysis) and with similar firms over different periods (the longitudinal analysis). Second, Tobit and logistic regressions are applied to analyze factors affecting the percentage of goodwill impairment and a decision to report goodwill impairment. Finally, a logistic regression and a multivariate discriminant analysis (MDA) are used to assess the predictive ability of relative efficiency in determining potential goodwill impairment.

Discipline thesis:degree_discipline

Business Administration

Grantor

Oklahoma State University

Year dc:date.issued

2007

Author dc:creator

• Vichitsarawong, Thanyaluk

Advisor dc:contributor.advisor

• Hansen, Don R.

Committee members dc:contributor.committeemember

• Meek, Gary K.
• Nabar, Sandeep
• Tilley, Daniel S.

Statement dc:rights

• Copyright is held by the author who has granted the Oklahoma State University Library the non-exclusive right to share this material in its institutional repository. Contact Digital Library Services at lib-dls@okstate.edu or 405-744-9161 for the permission policy on the use, reproduction or distribution of this material.

Language dc:language

en_US

Handle dc:identifier.uri

http://hdl.handle.net/20.500.14446/7146

OAI identifier oai:identifier

oai:openresearch.okstate.edu:20.500.14446/7146