Publication:
Goodwill impairment disclosure and integrated reporting: evidence on credit ratings and earnings manipulation

Placeholder

Organizational Units

Program

School / College / Institute

College of Administrative Sciences and Economics

KU-Authors

KU Authors

Co-Authors

Pavlopoulos, Athanasios
Iatridis, George Emmanuel

Publication Date

Language

Embargo Status

Journal Title

Journal ISSN

Volume Title

Alternative Title

Abstract

This study examines the effect of goodwill impairment disclosure quality and integrated reporting (IR) compliance on earnings manipulation and credit ratings. We assess whether IR and goodwill impairment disclosure quality are associated with managerial behaviour. We find that firms with goodwill impairment are likely to use earnings manipulation and display lower IR compliance and goodwill impairment disclosure quality. We examine the impact of managerial discretion over goodwill impairment on the decision to publish voluntary IR information. We find that companies are likely to voluntarily adopt IR when goodwill impairment is low and goodwill impairment disclosure quality is high. When we broaden our investigation to companies that have already adopted IR, we find that IR compliance is likely to decrease earnings manipulation, increase credit ratings and improve the quality of goodwill impairment disclosure even in the presence of goodwill impairment. Our results highlight the informativeness of IR compliance and support the need for firms to disclose goodwill impairment losses in order to reduce information asymmetry and uncertainty. Copyright © 2023 Inderscience Enterprises Ltd.

Source

Publisher

Inderscience Publishers

Subject

Business, Finance

Citation

Has Part

Source

International Journal of Banking, Accounting and Finance

Book Series Title

Edition

DOI

10.1504/IJBAAF.2023.129339

item.page.datauri

Link

Rights

Rights URL (CC Link)

Copyrights Note

Endorsement

Review

Supplemented By

Referenced By

0

Views

0

Downloads

View PlumX Details