Value-relevance of accounting numbers : an empirical investigation of purchased goodwill / Muhd Kamil Ibrahim ... [et al.]

Ibrahim, Muhd Kamil and Mohd Said, Marzita and Abd Latif, Radziah and Abd Shukur, Zaleha (2003) Value-relevance of accounting numbers : an empirical investigation of purchased goodwill / Muhd Kamil Ibrahim ... [et al.]. Malaysian Accounting Review, 2 (1). pp. 106-123. ISSN 1675-4077

Abstract

We examine the value-relevance of accounting numbers in the balance sheet to investors. Specifically, we investigate the association between purchased goodwill and the value placed on the firm by the stock market. An equity valuation model based on the modified balance sheet identity is used to permit purchased goodwill, other assets and liabilities to have separate empirical coefficient values. This study finds evidence consistent with the notion that be market incorporates the information on purchased goodwill in the valuation of a firm and results also show that the market seems to perceive purchased goodwill at least with a value equal to other assets. Several empirical extensions are explored to examine whether the basic finding can be made more robust.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Ibrahim, Muhd KamilUNSPECIFIED
Mohd Said, MarzitaUNSPECIFIED
Abd Latif, RadziahUNSPECIFIED
Abd Shukur, ZalehaUNSPECIFIED
Subjects: H Social Sciences > HF Commerce > Accounting. Bookkeeping > Managerial accounting
H Social Sciences > HF Commerce > Accounting. Bookkeeping > Balance sheet. Financial statements. Corporation reports. Including pro forma statements
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Malaysian Accounting Review
ISSN: 1675-4077
Volume: 2
Number: 1
Page Range: pp. 106-123
Item ID: 13682
Uncontrolled Keywords: Balance sheet, stock market, purchased goodwill
URI: http://ir.uitm.edu.my/id/eprint/13682

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