Determinants of Goodwill Impairment Loss Recognition

Authors

  • Mara Vogt Fundação Universidade Regional de Blumenau; Programa de Pós-Graduação em Ciências Contábeis
  • Caroline Sulzbach Pletsch Universidade do Estado de Santa Catarina; Departamento de Ciências Contábeis
  • Vania Regina Morás Fundação Universidade Regional de Blumenau; Departamento de Ciências Contábeis
  • Roberto Carlos Klann Fundação Universidade Regional de Blumenau; Programa de Pós-Graduação em Ciências Contábeis

DOI:

https://doi.org/10.1590/1808-057x201602010

Abstract

This study aimed to verify the determinants of goodwill impairment (GOODWIMP) loss recognition in Brazilian companies. For this, a descriptive and documentary study was carried out in which information was collected from databases and explanatory notes using a quantitative approach. The study sample was comprised of Brazilian companies listed on the Thomson database, totaling 91 companies and 346 observations. Data were collected from 2011 to 2014. For the treatment and analysis of the data, logistic regression with panel data was used. The results show that the factors change in management (CHMAN), book-to-market (BM), number of cash generating units (CGU), variation in return on assets (ΔROA) and goodwill (GOODW) were significant in determining GOODWIMP losses. These findings indicate that in addition to economic factors, managers' actions are associated with the recognition of such losses, which can be characterized as incentives for earnings management (EM) practices. Therefore, it is generally concluded that the GOODWIMP losses recognized in the companies analyzed may not only have been used to reduce their assets to recoverable amounts, but also to achieve results consistent with the objectives of managers.

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Published

2016-12-01

Issue

Vol. 27 No. 72 (2016)

Section

Articles

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How to Cite

Vogt, M., Pletsch, C. S., Morás, V. R., & Klann, R. C. (2016). Determinants of Goodwill Impairment Loss Recognition . Revista Contabilidade & Finanças, 27(72), 349-362. https://doi.org/10.1590/1808-057x201602010