The impact of corporate governance on the association between goodwill write-offs and accounting conservatism

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en
dc.contributor.author Både, Evelina
dc.date.accessioned 2015-12-16T08:18:03Z
dc.date.available 2015-12-16T08:18:03Z
dc.date.issued 2015
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/19279
dc.description.abstract This thesis investigates whether a firm's corporate governance has an impact on the association between goodwill write-offs and accounting conservatism. The aim is to show that earnings are conditionally conservative and the firm's governance (measured as CEO-chairman duality) is associated with the level of conditional conservatism. In addition, I will test whether bad news increase the probability of goodwill write-offs and if the firm's governance is associated with the timeliness of goodwill write-offs. In the background there is the standard SFAS 142 which eliminated the annual amortization of goodwill and presented the annual impairment test required for goodwill. It has been criticized that this has increased managers' ability to manipulate earnings due to the unverifiable fair-values. Conservative financial reporting works as a governance mechanism and prevents potential earnings manipulation by the managers. I will investigate if the conservative financial reporting as a governance mechanism has an impact on the timeliness of goodwill write-offs. The empirical part of this study is conducted as a linear regression and logistic regression analysis with evidence from the US collected from 2009-2013. Basu's model (1997) is used to measure conservatism. The findings show that bad news increase the probability of goodwill write-offs but no association between the corporate governance and conservatism was found. It might be that the fair-value accounting is overtaking accounting conservatism or the complex definition and measuring of corporate governance has limited this study. en
dc.format.extent 73
dc.language.iso en en
dc.title The impact of corporate governance on the association between goodwill write-offs and accounting conservatism en
dc.type G2 Pro gradu, diplomityö fi
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Business en
dc.contributor.department Laskentatoimen laitos fi
dc.contributor.department Department of Accounting en
dc.subject.keyword goodwill write-off
dc.subject.keyword accounting conservatism
dc.subject.keyword corporate governance
dc.identifier.urn URN:NBN:fi:aalto-201512165797
dc.type.dcmitype text en
dc.programme.major Accounting en
dc.programme.major Laskentatoimi fi
dc.type.ontasot Master's thesis en
dc.type.ontasot Pro gradu tutkielma fi
dc.subject.helecon laskentatoimi
dc.subject.helecon accounting
dc.subject.helecon corporate governance
dc.subject.helecon corporate governance
dc.subject.helecon liikearvo
dc.subject.helecon goodwill
dc.subject.helecon tulos
dc.subject.helecon return
dc.subject.helecon tuotto
dc.subject.helecon rate of return
dc.ethesisid 14178
dc.date.dateaccepted 2015-11-04
dc.location P1 I


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