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Persistent link: https://www.econbiz.de/10010861546
The cost of equity capital is traditionally considered as an increasing function of the estimation risk – the risk of error regarding the distribution of a firm’s future cash flows (FCF). Under international GAAPs, IAS 36 “Impairment of assets” -based information disclosure conveys...
Persistent link: https://www.econbiz.de/10011246078
When historical cost is used, the incomes are smoothed in a way that delays the recognition of the financial institutions lessening solvency, especially in the case of fixed rate loans when market rates are decreasing. We study the case of Credit Lyonnais which had the opportunity to transfer...
Persistent link: https://www.econbiz.de/10010742291
Persistent link: https://www.econbiz.de/10010706511
In this paper we propose a new method to explain the creation and measure the value of internally generated goodwill (IGG). Our method is based on the idea that firm value is affected by interactions between assets used in combination to conduct business. This novel approach contrasts with the...
Persistent link: https://www.econbiz.de/10010706635
Persistent link: https://www.econbiz.de/10010707123
This study investigates whether European firms reporting under domestic GAAPs exhibit major differences while examining the relationship between their economic (financial, operating and competitive) performance and their recognized intangible investment (RII). Using a five-European-country...
Persistent link: https://www.econbiz.de/10010707558
This article focuses on the determinants of goodwill impairment. After reviewing International and US standards related to accounting for goodwill, we identify two types of risk factors that can lead to goodwill impairments: economic factors (e.g., initial overpayment, or a deterioration of the...
Persistent link: https://www.econbiz.de/10010708216
This study investigates the extent to which three key summary accounting income figures, namely operating income (OPI), net income (NI) and comprehensive income (CI), provide value-relevant information to investors in major EU capital markets. Using a large sample over the pre-IAS-compliance...
Persistent link: https://www.econbiz.de/10010708602
For the last two decades, authors (e.g. Ohlson, 1995; Lev, 2000, 2001) have regularly pointed out the enforcement of limitations by traditional accounting frameworks on financial reporting informativeness. Consistent with this claim, it has been then argued that accounting finds one of its major...
Persistent link: https://www.econbiz.de/10010708968