DeAngelo and DeAngelo (2006) (D&D hereafter) argue that ‘payout policy is not irrelevant and investment is not the sole determinant of value, even in frictionless markets.' We first re-examine their critique using M&M's (1961) multiperiod valuation framework and identify non-essential...

Purpose: The aim of the paper is to investigate earnings management practices related to goodwill accounting, focusing on its first recognition as well as its write-offs, due to the impairment test.Design/methodology/approach: The study refers to a sample of Italian listed firms and the analysis...