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

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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.

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Item Type: Article
Creators:
Creators
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Ibrahim, Muhd Kamil
UNSPECIFIED
Mohd Said, Marzita
UNSPECIFIED
Abd Latif, Radziah
UNSPECIFIED
Abd Shukur, Zaleha
UNSPECIFIED
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
UiTM Journal Collections: UiTM Journal > Management & Accounting Review (MAR)
ISSN: 1675-4077
Volume: 2
Number: 1
Page Range: pp. 106-123
Official URL: https://mar.uitm.edu.my/
Item ID: 13682
Uncontrolled Keywords: Balance sheet, stock market, purchased goodwill
URI: https://ir.uitm.edu.my/id/eprint/13682

ID Number

13682

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