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Researchers have long been interested in how owners affect firms' corporate social responsibility (CSR) performance. However, owners face diverging ethical preferences between funding and potentially benefiting from their firms' CSR performance. To better understand owners' influence on firms' CSR performance, we focus on ultimate controlling owners with the highest control rights over their firms. We theorize that ultimate controlling owners with more control rights have stronger motivations and greater decision-making power to promote firms' CSR performance to demonstrate that they are responsible owners and gain legitimacy and goodwill from their stakeholders. Moreover, we explore how this positive relationship is strengthened when ultimate controlling owners and their firms share similar corporate names and receive increased financial analyst coverage, as these conditions increase the likelihood of gaining legitimacy and goodwill through their firms' improved CSR performance. We test our theory using a sample of 852 publicly listed Chinese firms from 2008 to 2017. Our findings support our theoretical predictions and contribute to a more nuanced understanding of how differences in ownership structure and owner type associated with ultimate controlling owners shape their motives and power to affect CSR performance in their firms. [ABSTRACT FROM AUTHOR]

This paper investigates how private information affects the joint determination of the payment method and the bid premium in M&As. The focus is on the uncertainty of the stand‐alone valuations of the firms involved in the transaction induced by their opacity. First, we model M&A negotiations as a signalling game with two‐sided private information and derive correlations between firm opacity and bid characteristics from equilibrium analysis. Then, we analyze a sample of U.S. deals, using an index based on market measures of adverse selection to quantify firm opacity. We find that the likelihood of stock offers and the bid premium increase with the target's opacity, while more opaque bidders are associated with fewer stock offers and smaller bid premiums. [ABSTRACT FROM AUTHOR]

This review systematically investigates the body of scientific knowledge on value relevance in accounting and reporting fields through a mixed method integrating bibliometric and systematic literature review (SLR) instruments. A dataset of 918 journal articles published from 1996 to 2020 was identified and processed by combining different bibliometric instruments. Findings highlight the most influential articles, journals, authors and countries and the most relevant thematic clusters: IFRS introduction and value relevance of accounting data; Capital market, earnings and equity book values; intangibles and non-financial information; Fair value accounting and goodwill. The main insights from the most relevant contributions were discussed for each cluster. Promising research areas and future research opportunities were also outlined. To the best of the authors' knowledge, this is the first study that integrates bibliometric and SLR instruments to provide a comprehensive outlook of the scientific debate originating from value relevance research. [ABSTRACT FROM AUTHOR]

Is foreign aid an effective soft power tool to bolster the international image of donor states? This article explores this question in the context of China's humanitarian assistance to Europe amid the COVID-19 pandemic. Anti-coronavirus aid generated affinity for Beijing in some receiver countries while backfired in others. Borrowing insights from social psychology, this study presents an explanation for this heterogeneous effect. It argues that beneficiaries' initial views of China predispose Beijing's image to a confirmation bias, leading the perceptions of pandemic aid intent to be aligned with pre-existing assessments. Specifically, receiver states with predominantly favorable views of China tend to appreciate the transfer of resources as an act of goodwill. However, recipient countries which lean towards a negative belief of the PRC are inclined to interpret the assistance as a faulty mask diplomacy to manipulate narratives and to expand geopolitical influence. The theory suggests that foreign aid cannot alter donors' global standing, but rather, it merely reinforces their established images. [ABSTRACT FROM AUTHOR]

The aim of this study is to examine whether good asset allocation by a CEO leads to superior stock returns and, if so, how one might be able to identify CEOs that are good asset allocators. Employing US data from May 2001 to April 2019, we find that CEOs that invest the company's cash flows according to a value-investing style seem to outperform companies that do not. We find that high goodwill to assets and high operating margin (good asset allocator) companies outperform companies with high or low goodwill to assets and low operating margin (poor asset allocator) companies. The findings are corroborated with out-of-sample (May 2019–April 2023) robustness tests. When buying other businesses, value investor CEOs ensure that their consolidated operating margins remain high, as opposed to other firms managed by poor asset allocator CEOs who buy businesses that bring down operating margins, either because they overpay or due to an inability to materialize expected synergies. Using both summary statistics and regression analysis, the findings of this study help us identify companies that allocate assets like value investors and enable us to anticipate future stock performance. For example, if a company, on average, has a goodwill/assets ratio of 41.03%, and an operating margin of 21.38%, it is likely this firm would be at the top quartile in terms of stock return performance over at least the next three years. At the same time, if a firm has a low average goodwill/assets ratio (i.e., 1.95%), its operating margins, on average, should be 24.46%, if it wants to achieve a similar performance as that of firms with high goodwill/assets. Moreover, the future stock return predictability of high (low) goodwill/assets and high (low) operating margin firms, found in this study, can help an investor develop trading strategies that can lead to superior stock price performance by effectively taking long positions in (shorting) firms that are (not) managed by value investor CEOs. Finally, the paper's findings can also help investors in another way. For example, investors tend to be skeptical about companies with high goodwill/assets. The rule of thumb is to beware of companies carrying goodwill on their balance sheets that is more than 25% of assets. Based on our findings, this should not be a problem as long as the company's operating margin has remained high and is rising. [ABSTRACT FROM AUTHOR]

This study delves into the impact of intangible and tangible investments on future earnings volatility within the European financial market context. Drawing from International Accounting Standards (IAS) 16 and 38, we examine the intricate relationship between fixed assets, expenses, and the uncertainty surrounding forthcoming earnings. Our analysis reveals that intangible assets, often associated with heightened uncertainty and risk, contribute to increased earnings volatility compared to capital expenditures. Furthermore, we find that capitalizing intangible assets serves to alleviate uncertainty, resulting in lower earnings volatility compared to expensing them. Our exploration of industries' effects further reinforce these findings, with the effect of intangible and tangible investments on earnings volatility being more pronounced in high-tech industries than in low-tech industries. Additionally, our robustness test, utilizing goodwill as a proxy for intangible assets and property, plant, and equipment as a proxy for tangible assets, yields consistent results, further bolstering our findings. [ABSTRACT FROM AUTHOR]

This paper seeks to track the intellectual evolution of four important streams of thought in the American accounting literature, tracing them back to their originating expressions. The four streams are decision usefulness in both management accounting and financial accounting, futurity in financial accounting, the literature on general price-level accounting, and consolidation goodwill in business combinations. [ABSTRACT FROM AUTHOR]

This paper deals with a class of optimal control problems which arises in advertising models with Volterra Ornstein-Uhlenbeck process representing the product goodwill. Such choice of the model can be regarded as a stochastic modification of the classical Nerlove-Arrow model that allows to incorporate both presence of uncertainty and empirically observed memory effects such as carryover or distributed forgetting. We present an approach to solve such optimal control problems based on an infinite dimensional lift which allows us to recover Markov properties by formulating an optimization problem equivalent to the original one in a Hilbert space. Such technique, however, requires the Volterra kernel from the forward equation to have a representation of a particular form that may be challenging to obtain in practice. We overcome this issue for Hölder continuous kernels by approximating them with Bernstein polynomials, which turn out to enjoy a simple representation of the required type. Then we solve the optimal control problem for the forward process with approximated kernel instead of the original one and study convergence. The approach is illustrated with simulations. [ABSTRACT FROM AUTHOR]

Goodwill as a concept is relevant across several areas of the law. Goodwill is inherently linked to a business and its value derives from the business. However, in recent times, the courts have recognised the concept of a "going concern value" of a business, which is distinguished from the goodwill of the business and represents the value of the business operating as a going concern. This article analyses these concepts by considering the nature of a business and way in which businesses are transferred. It also considers the "excess value" of a business, being the value over and above the values of identifiable assets, and notes that this is difficult to determine, partly because it is difficult to determine the methodologies for valuing the identifiable assets. The treatment of the excess value, as either goodwill or the "going concern value" of a business can be reconciled by identifying what is made up in the "excess value" of a business. In order to do this, this article identifies how one would go about determining what portion of the excess value relates to goodwill and what relates to the going concern value of the business; some may be allocated to the separate concept of the synergistic value of a business. In this regard, the portion that is allocated to the going concern value of the business is actually allocated to the non-goodwill assets of the business. [ABSTRACT FROM AUTHOR]

Purpose: As the cost of completing a transaction, the green merger and acquisition (M&A) premium paid on mergers can influence whether the acquisition creates value or not. However, studies linking M&A premiums to firm value have had mixed results, even fewer studies have examined the effect of green M&A premiums on bidders' firm value. The purpose of this paper is to investigate whether and how green M&A premiums affect firm value in the context of China's heavy polluters. Design/methodology/approach: Using 323 deals between 2008 and 2019 among China's heavy polluters, this paper estimates with correlation analysis and multiple regression analysis. Findings: Green M&A premiums are negatively associated with firm value. The results are more significant when firms adopt symbolic rather than substantive corporate social responsibility (CSR) strategies. Robustness and endogeneity tests corroborate the findings. The negative relation is stronger when acquiring firms have low governmental subsidy and environmental regulation, when firms have overconfident management, when firms are state-owned and when green M&A occurs locally or among provinces in the same region. This study also analyzes agency cost as an intermediary in the relationship between green M&A premium and firm value, which lends support to the agency-view hypothesis. Originality/value: This study provides systemic evidence that green M&A premiums damage firm value through agency cost channel and the choice of CSR strategies from the perspective of acquirers. These findings enrich the literature on both the economic consequences of green M&A premiums and the determinants of firm value and provide a plausible explanation for mixed findings on the relationship between green M&A premiums and firm value. [ABSTRACT FROM AUTHOR]

This article discusses the global perspectives on pediatric anesthesia and the efforts to improve perioperative and anesthesia care for children worldwide. The themed issue of the journal focuses on three main themes: pediatric anesthesia training, patient safety and quality, and pediatric anesthesia research initiatives. It highlights the challenges and potential solutions in the provision of pediatric anesthesia care, both in low- and middle-income countries (LMICs) and high-income countries (HIC). The article emphasizes the need for standardized training protocols, collaboration, and advocacy to ensure safe and effective anesthesia care for all children, regardless of their geographic location. [Extracted from the article]

Mathematical analysis is conducted on cyclical systems with goodwill in capitalization. Proportional goodwill vanishes with vanishing tangible value. Correspondingly, periodic boundary condition does not enable commercial utilization of the goodwill. Abandoning the periodic boundary condition enables commercial utilization of the goodwill. Even if a physical system is periodic, an agent can abandon the corresponding boundary condition by divesting. Example cases are shown in terms of boreal forestry systems. [ABSTRACT FROM AUTHOR]

Purpose - This study empirically investigates the relationship between goodwill assets and capital structure (i.e. debt ratio) of firms and the moderating effect of financial market development on the relationship between goodwill assets and capital structure. Design/methodology/approach - This research applied a quantitative method. The article collects large samples of listed firms from 23 developing and nine developed countries and applied the panel data techniques. This research used firm-level data from the DataStream database for both developed and developing countries. The study uses 4,912 firm-level data from 23 developing countries and 4,303 firm-level data from nine developed countries. Findings - The findings reveal a significant positive relationship between goodwill assets and capital structure in developing countries, but goodwill assets have a significant negative relationship with capital structure in developed countries. Moreover, financial market development positively moderates the relationship between goodwill assets and the capital structure of firms in developing countries. The results inform firm managers that goodwill assets serve as additional collateral to secure debt financing. Moreover, policymakers should formulate a debt market policy that recognizes goodwill assets as additional collateral for the purpose of obtaining debt capital. Research limitations/implications - The study has several implications. First, goodwill assets are identified as a factor of capital structure in this study. Fixed assets have been identified as one of the drivers of capital structure in previous research, although goodwill assets are seldom included. Second, this article shows that along with demand-side determinants, supply-side determinants also play an important role in terms of the firms' choice about the capital structure. Therefore, firms should take both the demand-side and supply-side factors into consideration when sourcing for external financing (i.e. debt capital). Originality/value - The study considered goodwill as a component of capital structure. The study analysis includes a large sample of enterprises, including 4,912 big firms from 23 developing countries and 4,303 large firms from nine industrialized or developed countries, which adds to the current capital structure information. Furthermore, a large sample size increases the results' robustness and generalizability. [ABSTRACT FROM AUTHOR]

Purpose: The purpose is to make reflections from a historical, conceptual and comparative review on goodwill in one hundred years of accounting theory, still considered a difficult topic with the theoretical and normative evolution. Methodology: Theoretical essay produced from an integrative qualitative literature review. It presents the theoretical evolution and challenges observed by theorists and regulators since the seminal study "Accounting Theory" by William Paton (1922). Results: The relevance attributed to goodwill goes far beyond the concepts and criteria for recognition and measurement. Its interpretation and processing are influenced by cognitive aspects, economic interests, and in a moment of economic crisis, debates on the topic are intensified, motivated by stakeholders' concerns, regulators and theorists, the same in one hundred years of evolution. So, the future of goodwill is undefined. Contributions of the Study: The historical and comparative analysis, limited in the choice of the references on the subject, contributes to confirm the subjectivity and absence of conceptual, normative and practical consensus for goodwill, thus there aren't right or wrong among theorists and regulators. The scenario of high volatility in the capital markets during Covid-19 pandemic, for example, arose new theoretical discussions about the quantum and multidisciplinary dimension and the possible return of Accounting practices used in the past. Therefore, the relevance of goodwill requires that not only regulators establish rules, but that theoretical and practical ethically contribute to the debate. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the impact of human resource investment in internal controls (hereinafter, IC personnel) on managers' goodwill impairment decisions. Design/methodology/approach: The authors use the ratio of IC personnel to the number of employees in the firm and the average work experience of IC personnel as quantitative and qualitative measures for IC personnel, respectively. Findings: The authors find that the relationship between the likelihood of impairment and the expected impairment is not associated with the ratio of IC personnel. However, the average experience of IC personnel increases the likelihood that a company will record an impairment when there are market and financial indicators of impairment. The findings suggest that the effectiveness of IC is determined by practical proficiency rather than size. Furthermore, our analyses demonstrate that the greater the experience of the IC personnel in the accounting/finance or IT departments, the more likely the manager will record an expected impairment. Overall, our findings emphasize the importance of IC personnel expertise to enhance the effectiveness of IC for financial reporting. Originality/value: Using unique data available only in Korea, to the best of the authors' knowledge, this is the first study to show the effect of human resource investment in IC on goodwill impairment. [ABSTRACT FROM AUTHOR]

Purpose: Article discusses the valuation of company brands, focusing on Polish enterprises. It delves into the increasing importance of intangible assets like brand value in the modern economy. Design/methodology/approach: The paper presents a detailed methodology for valuing brands, which includes analyzing financial reports, surveys, and stock exchange data. The study highlights the complexity of brand valuation, considering factors like intellectual capital, goodwill, and market volatility. Findings: It emphasizes the need for a multifaceted approach in valuation, integrating various methods to achieve a more accurate assessment. Additionally, it presents a list of the most valuable brands in 2021, demonstrating the dominance of certain sectors like technology and retail in brand value. The research concludes that there is no single, definitive method for brand valuation, underscoring the subjective nature of this process. Originality/value: This paper is base on Polish enterprises, which provides appropriate data. The presented methodology is a original approach. [ABSTRACT FROM AUTHOR]

Purpose: This study empirically assesses the perceptions the public has of employees and their organization following a [re]tweet, and the additional potential ameliorating effect of a disclaimer distancing the organization from the individual employee's social media presence. Design/methodology/approach: A fully crossed 2 (disclaimer vs. no disclaimer) × 2 (positive vs. negative valence post) × 2 (post vs. retweet) experiment exposed participants (N = 173) to an employee's personal tweet. Resultant perceptions of both the poster (i.e., goodwill) and the poster's organization (i.e., organizational reputation) were analyzed using planned contrast analyses. Findings: Findings reveal audiences form impressions of individuals based on both tweeted and retweeted content. Perceptions of both the poster's goodwill and the poster's organization were commensurate with the valence of the poster's tweets, stronger when posts were original tweets rather than retweets, and there was a significant interaction effect between valence and [re]tweet. Disclaimers did not significantly affect perceptions, suggesting employers may be better served by asking employees to omit reference to their employer on their personal social media accounts. Originality/value: This research contributes to understanding how employee and organizational reputation are affected by employees' personal social media content. Results suggest that even when a disclaimer explicitly seeks to distance an employee from the organization, audiences still see the employee as an informal brand ambassadors of their organization. [ABSTRACT FROM AUTHOR]

Expert advice is presumed to be more valuable, but, when the expert has a conflict of interest, overcoming that conflict is difficult. We examine the performance of acquirers who hire an adviser that employs an expert—a star analyst—who covers the target and show that such "star-crossed" acquirers fare worse than other acquirers along multiple dimensions, including lower announcement returns and higher subsequent goodwill impairments. We consider various explanations for these outcomes, and the evidence strongly points toward star-crossed acquirers being unable to mitigate their advisers' conflict of interest. Surprisingly, our analysis suggests that star-crossed managers are uninformed ex-ante about the low quality of the deals. Finally, we posit that a star-crossed adviser's advantage increases with the opacity of the target firm's accounting. Consistent with this, we find that, in star-crossed deals only, acquirer announcement returns decrease with target opacity. [ABSTRACT FROM AUTHOR]

In Industry 4.0, sustainability is the heart, and governance is the soul of the business, but diversity washing, greenwashing, and SDG washing are skeptical. This is due to the reactive/normative approach in dealing with sustainability and governance, which has created an amounting number of greenhouse gases, waste generation, and several business washing challenges. This study has explored the Scopus and Web of Science databases and searched for the keywords "Sustainable Development Goals" AND "Director," which provided 76 documents. However, when the authors added the third keyword, "ISO 37001–2021," along with the above two keywords, the database provided no study investigating the moderation role of ISO 37001–2021. Therefore, the study advocates the adoption of newly developed ISO 37000:2021 good governance standards for greenwashing, SDG washing, and diversity washing challenges without failing to contribute to the firm sustainable development goal performance and earning management. Secondly, the independent director attribute's role is vital due to the potential, power, position, and evidence to adopt ISO 37000:2021 standards. Thirdly, the scoping review study has proposed a conceptual model to extend the reporting discloser and transparency. It goes beyond mere compliance, contributes towards societal development, and promotes adopting sustainable development goal performance and reporting as a new non-financial parameter for evaluating the firm's performance. Lastly, this will boost firm sustainability and adopt the circular economic model, creating a unique competitive edge and green governance goodwill among the business's external stakeholders and attracting sustainably responsible investors. [ABSTRACT FROM AUTHOR]

This study investigates how potential target firms' environmental, social, and governance (ESG) performance affects bid premiums during the merger and acquisition (M&A) process. Using a sample of 5658 M&A deals between 2009 to 2020, we provide new evidence that target firms' ESG rating is positively correlated to bid price, particularly when the target firm scores highly on their singular environmental and governance ratings, whereas the targets with high single social ratings alone are not correlated to bid price. Our results also implied that when the target has lower environmental and governance performance, M&A deals are less likely to face bid premiums. We additionally find that the target firms of non‐state‐owned enterprises (non‐SOEs) are more likely to have a higher bid price as opposed to state‐owned enterprises' (SOEs) target firms. Additionally, we find that targets' ESG rating is positively correlated to target shareholder value creation, as well as being positively correlated to short bid deal negotiation times. Overall, our findings are in line with target‐resistance theory, which states that high ESG performance targets can use their ESG advantages to increase their bid price, as well as increase stakeholder engagement and generation of post‐M&A synergy. [ABSTRACT FROM AUTHOR]

The progressive harmonization of corporate financial information, based on the International Financial Reporting Standards, has moved fair value accounting (FVA) to the forefront of a debate that straddles accounting and corporate tax. Given the subjectivism that FVA may exhibit, especially when mark to market is not available and mark to model is used as in level 3 FVA, tax legislators have strongly restricted its impact on the corporate tax base. This paper argues that while the Portuguese corporate tax legislators explicitly followed this worldwide trend of restricting the tax impact of fair value to certain circumstances when market prices are observable (level 1 FVA), the corporate tax code has, nonetheless, several important avenues through which FVA influences taxable income determination. The main purpose of this paper is to present and discuss some important ways through which FVA may influence taxable income determination in Portugal, such as goodwill, impairment charges, transfer pricing, capital gains and exit taxation. Thus, the question emerges: is FVA returning through the window to impact the corporate tax base? Considering the global trends in public finance, and the need for present and future tax revenues, we believe this is an important topic to be addressed. [ABSTRACT FROM AUTHOR]

This study investigated the relative impacts of three corporate social responsibility (CSR) types – namely corrective, compensating and cultivating CSR – on brand defense by considering customer–company's (C–C's) identification mediation role and CSR authenticity's moderation role in these relationships. A between-subject experiment was conducted on 573 coffee shop customers in the United States. The findings revealed corrective CSR is the strongest brand defense predictor, followed by compensating and cultivating CSR. The CSR types' relative effects are mediated by C–C identification, and as such, compensating CSR's indirect effects on brand defense through C–C identification are stronger than cultivating CSR's indirect effects on brand defense. When the CSR authenticity level is high, cultivating CSR has a significant indirect effect – through C–C identification – on brand defense that is stronger than when the CSR authenticity level is low. When the level is high, compensating CSR has an insignificant indirect effect – through C–C identification – on brand defense, similar to when the level is low. Finally, findings on moderated mediation revealed the indirect relationship between the three CSR types on brand defense – through C–C identification – is moderated by CSR authenticity. [ABSTRACT FROM AUTHOR]

This Study aim to analyze how implementation model of entrepreneurial orientation, market orientation and business performance on Micro and Small Entreorises for food category in City Jambi. Study this is qualitative research. The approach used in this research is a case study of the research object, Micro and Small Enterprises in term of food and beverage entreprises. The determination of informants in this research, it was carried out using a purposive sampling technique where selection was carried out deliberately based on predetermined criteria and set based on objectives study. Informant study This is: Manager/owner Business Micro and Small category Food in Jambi. The research results show that food business owners have an entrepreneurial orientation and understand market desires (market orientation). MSEs understand that the more market-oriented and entrepreneurial they are, the better their business performance will be. The use of technology in the form of social media as a means of promotion has been carried out, but the courage to take risks is still low. [ABSTRACT FROM AUTHOR]

Thus far, the data envelopment analysis (DEA) model has not been used to examine the lagged effects of advertising goodwill stock on promotional efficiency. Thus, this study develops a dynamic DEA framework to illustrate the lagged effect of advertising goodwill stock on the dynamic promotional efficiency of major automobile manufacturers in the United States. The advertising goodwill stock in five automobile producers was measured using the econometric model. Subsequently, the advertising goodwill stock was treated as a lagged effect in a dynamic DEA framework. We analyse the empirical results and formulate the following two important findings: First, the results demonstrate that the lagged effect of advertising goodwill stock can lead to changes in the promotional efficiency of advertising. Second, the paper discusses ways that inefficient automobile manufacturers can improve marketing strategy implementation. [ABSTRACT FROM AUTHOR]

The Chinese capital market created a large amount of goodwill assets after several waves of mergers, acquisitions, and restructuring. The potential risks posed by these goodwill assets to the continued stable development of the business during subsequent impairments cannot be ignored. This study selects a sample of non-financial listed companies in the A-share market in China for 2007-2021. The results indicate that goodwill impairment significantly and negatively affects firm performance. At the same time, goodwill impairment significantly affects management capability and mitigates the impact of goodwill impairment on company performance by exercising management capability. High-capacity management plays a greater inhibiting role in the relationship between goodwill impairment and corporate performance. The findings of this study validate the management's ability to perform in companies with goodwill impairment under the new accounting standards and also provide reference values on how to reduce the risks associated with goodwill impairment. [ABSTRACT FROM AUTHOR]

Using a setting with tax-deductible goodwill impairments, we examine how tax deductibility affects impairment decisions. Goodwill impairments are costly to firms, and managers generally attempt to avoid recording impairments. However, we propose that tax deductibility reduces the net cost of impairment, increasing the likelihood of impairment. Results indicate that tax deductibility increases impairment likelihood, especially when capital market pressure is high, consistent with tax deductibility reducing the net cost of impairments (i.e., partially offsetting high costs of impairment). We rule out known plausible nontax explanations for these effects. Overall, results suggest that taxation is an important, previously overlooked determinant of economically important goodwill impairments. Data Availability: Data used in this study are available from public sources identified in the paper. JEL Classifications: F23; G32; H20; M41. [ABSTRACT FROM AUTHOR]

To provide a fuller picture of compliance with ASC 350-20, we hand-collect data to track 893 large acquisitions across time. Our model, which links impairments to post-acquisition accounting and market performance declines as well as acquisition-year attributes, identifies 349 acquisitions as likely to impair. We provide evidence that 65 percent of these at-risk acquisitions impair in the next two years. Our study should be useful to future research as it clarifies the role of hand-collection, market to book ratios, segment-level data, and volatility. We also offer descriptive evidence on impairment patterns. Overall, we find high levels of compliance and little opportunism. [ABSTRACT FROM AUTHOR]

The immaterial world has always aroused people's interest because being intangible, it is often considered enigmatic and in addition has major effects, sometimes vital for those with whom it interacts. Firms own both tangible and intangible assets that contribute to business continuity and increased performance. The article deals with issues related to the differences that the application of different accounting regulations in Romania have on the valuation and recognition of intangible assets and the accounting implications they have in certain special cases, such as the global valuation of companies for different purposes, for example in the case of merger or division, consolidation of the accounts of groups of companies. As we have shown in the article, the application of different accounting regulations leads to differences in the recognition and measurement of intangible assets (as is the case in our country) regarding, for example, the capitalization of formation expenses or their recording as current expenses, their presentation at net book value or the possibility to choose the revaluation treatment (fair value presentation being optionally permitted by IFRS), depreciable amount represented by input value or input value minus residual value (case of application of IFRS), etc. In mergers or divisions of companies, if the global valuation method is chosen, the estimation of the value of enterprises involved in such processes by authorised valuers may also have an impact on the value of intangible assets in the accounts of the absorbing/receiving company (either on identifiable assets meeting the conditions for recognition taken over at fair value or on goodwill). [ABSTRACT FROM AUTHOR]

A new product's introduction to the market is greatly influenced by effective and enough advertising. In this paper, we have considered a problem in which the firm partitions the market into various segments to reduce costs associated with advertising and targets to maximize the total profit. By integrating single channel and differentiated advertising to segmented market, we extend Nerlove-goodwill Arrow's dynamic model in which advertising variables are control variables. It is assumed that the whole available budget is imprecise and fuzzy in nature in order to create a realistic model. Using necessity and possibility constraints, the optimal control model with fuzzy parameters is transformed into crisp form, and the Pontryagin Maximum principle is then used to solve the problem. Numerical examples are provided to support the theoretical analysis. [ABSTRACT FROM AUTHOR]

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With the wave of M&A, total amount of goodwill balances has been accumulated to an enormous number in Chinese capital market. This study uses new independent variables to examine the determinants of goodwill impairments and to study the decision-making of discretionary goodwill impairments. First, this study investigates short-term and long-term market reaction of goodwill impairment announcements from 2019 to 2021 by using the event study method. Results indicate that goodwill impairments are only significantly associated with short-term cumulative abnormal return, on average. Then, based on the panel data of companies with goodwill balance from 2007 to 2020, logistic regression findings indicate that the companies without risk of financial loss have a higher probability of withdrawing goodwill impairments, on average; companies with stable operation have a higher probability of withdrawing goodwill impairments, on average. Result shows the discretion was used in goodwill impairments decision-making. [ABSTRACT FROM AUTHOR]

Prior research on SEC comment letters has almost exclusively focused on reviews of periodic filings, such as 10-Ks. Transactional filing reviews, such as those related to mergers and acquisitions (M&A), are a priority of the SEC to which it dedicates significant resources. We help fill the void in the literature by examining the influence of SEC comment letters on one type of transactional filing, Form S-4, on the accounting quality of a newly merged entity. We find that S-4s that receive an SEC comment letter are less likely to have a restatement or a goodwill impairment after a merger or acquisition is completed. Our inferences remain the same using either an entropy-balanced sample or a propensity-score-matched sample based on firm and deal characteristics. These results are stronger for S-4 comment letters with higher intensity and M&A-specific comments. Finally, to explore plausible mechanisms and provide context, we examine specific disclosure changes in S-4 amendments filed during the filing review process and find evidence that the improved M&A accounting quality is related to revisions to the pro forma financial statements, the total purchase price, and goodwill allocations. Overall, our findings provide evidence on the effectiveness of the SEC's comment letter process related to M&A. [ABSTRACT FROM AUTHOR]

The main issues of accounting reporting regarding goodwill are whether a firm's management reliably conveys their private information about future earnings, and whether they disclose value-relevant and useful information to accounting users. In the current International Financial Reporting Standards (IFRS) regulations, the goodwill impairment test is based on management's discretionary assessments. This study examines how goodwill impairment is reported under IFRS considering company- and industry-specific economic factors, proxies for earnings management, and macroeconomic crisis years. We extend previous research using tobit and logit regressions by employing a fixed-effects model. This approach is possible because of a panel dataset comprising 449 of 600 active companies sampled from the STOXX Europe 600 index from 2005 to 2018. We find that goodwill impairments are largely concentrated in certain companies, industries, and years. The regression models show a significant negative correlation between companies' return on total assets and goodwill impairments. Moreover, we discover that goodwill impairments have a significant positive correlation with goodwill intensity, debt ratio, and the proxy for reporting a one-off big bath charge. In addition, we find that the global financial crisis in 2008–2009 and the European debt crisis in 2011 differ significantly from other fiscal years. [ABSTRACT FROM AUTHOR]

Corporate social responsibility of an organization positively influence social and environmental factors. The public opinion is most necessary for successful business setup, which is based on Expectation, loyalty, looks at how media coverage of a businesses reputation and good will and crisis. Corporate social responsibility initiatives, which turns the shape of public views towards the organization. The study discovered that public perception and awareness towards corporate initiatives. It suggests to contribute more and spend wisely on various CSR sectors. [ABSTRACT FROM AUTHOR]

This paper reviews the empirical literature on the determinants and decision usefulness of goodwill reporting. We structure our discussion around five guiding questions that reflect longstanding policy issues: recognition, initial and subsequent measurement, disclosure, and the role of governance and monitoring. In addition to summarizing the findings, we assess the validity of the evidence. Our review indicates that goodwill amounts, on average, are associated with the underlying economics of the combining firms but are also shaped by managerial incentives and institutional context. Empirical research does not allow us to conclude whether current goodwill accounting rules provide for an optimal degree of discretion. Nonetheless, our analysis yields a number of policy implications and research suggestions. In addition to pointing out new research questions that could be addressed by further archival research, we advocate reproduction studies to test the generalizability of existing findings across contexts, and we encourage standard setters to initiate quasi-experiments to generate causal evidence and to render policymaking more accountable. We further suggest that researchers make more use of behavioral theories and non-archival methods to elucidate the motives and interactions of decision-makers in goodwill accounting. [ABSTRACT FROM AUTHOR]

However, for most franchise systems, it is more common for landlords to require a guaranty from the franchisor, or to insist upon signing the lease directly with the franchisor, who in turn can sublease or license the premises to its franchisee. If such cure is made by the franchisor, the lease should also state that the franchisor curing the default is not a general assumption of the lease obligations unless the franchisor expressly agrees to do so in writing. If that is not possible, then franchisors could take the headlease and offer a sublease to franchisees or allow franchisees to take the lease so long as franchisors have step-in rights, should the franchise be terminated. If the franchisee takes the head lease, the franchisor should insist on the inclusion of special terms in the lease to provide the franchisor with options upon a termination of the franchise agreement. [Extracted from the article]

Building on the notion of corporate financialization, this article analyzes the financial dynamics of the world's largest digital platforms over the period 2000–2020: Alibaba, Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft, and Tencent. These "Big Tech" corporations jointly form the infrastructural core of the digital economy. Taking cues from critical media studies and political economy, we probe their financial statements according to three stylized indicators of corporate financialization: (i) expanding financial assets and debt; (ii) augmenting asset structures, with intangible assets in the form of goodwill ballooning alongside tangible capital; and (iii) maximizing shareholder value. Our findings point to commonalities among the 'avantgarde of digital capitalism', where feedback loops between mounting market dominance, data extraction, and above-average profits have been successfully leveraged with key tools of corporate financialization to accelerate Big Tech's infrastructural dominance across economy and society. [ABSTRACT FROM AUTHOR]

Purpose: The paper deals with the issue of intellectual capital (IC) and its disclosure in the financial statements and other parts of annual reports of FTSE 100 entities. The paper aims to identify the determinants that influence entities to reveal IC related information and to highlight the theoretical aspects behind such determinants, resulting in comprehensive findings. The results of the analysis can be used to understand what leads entities to make decisions in the field of non-financial disclosure and help in the development of the IC reporting framework. Design/methodology: The research is devoted to the analysis of the relationship between the level of IC disclosures by companies and the analysed determinants - size, asset structure, profitability, industry and the factor of time. The dataset can be characterised as a panel data set containing 100 firms from the FTSE100 Index for the four most recent financial years (2018-2021). To produce a comprehensive set of results, descriptive statistics are used, followed by regression and correlation analysis. The random effect method is used as it has a higher predictive power than pooled OLS and fixed effect methods in analysing panel data. Findings: Based on the results of the analysis, it was concluded that the profitability measured as ROA is not a key factor of intellectual capital disclosure in the annual reports of FTSE 100 companies. From the point of view of size, there exists a statistically significant relationship between total assets and all components of IC, respectively overall IC. The analysis also showed a statistically significant impact of the sector in which companies operate. Particularly, companies in the service sector report more information on human capital and companies in the high-tech sector report more information on structural capital. A significant effect of asset structure was found for structural capital but only taking into account the effect of goodwill, not through the effect of other intangible assets. Finally, the paper demonstrated a positive and significant effect of the time factor on the level of reporting of all IC components. Originality/value: This paper focuses on the determinants influencing the level of IC reporting in a representative sample of entities from the highly active FTSE100 Index, which provides a very recent and specific data sample from a research perspective. The paper is based on determinants that are frequently reported in existing research, and it extends the scope by incorporating the effect of intangible assets and goodwill as variables representing the asset structure in addition to the effect of time. This paper presents statistically based results on the relationships between the determinants and IC but also between the different elements of IC (human capital, structural capital and relational capital), which provide insights into the structure of reported information on intellectual capital. This insight is very substantial given that many studies ignore the characteristics of the different components of the IC as they may be affected by different determinants. [ABSTRACT FROM AUTHOR]