Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/the-impact-of-ifrs-goodwill-reporting-on-financial-analysts-equity-6FsskJ0zp2
References (63)
-
Ron Shalev (2009)
The Information Content of Business Combination Disclosure LevelThe Accounting Review, 84
-
Dave Dearman, Michael Shields (2001)
Avoiding Accounting Fixation: Determinants of Cognitive Adaptation to Differences in Accounting MethodContemporary Accounting Research, 22
-
A. Wyatt (2005)
Accounting Recognition of Intangible Assets: Theory and Evidence on Economic DeterminantsBehavioral & Experimental Accounting
-
J. Kahle, R. Pinsker, R. Pennington (2007)
Belief Revision in Accounting: A Literature Review of the Belief-Adjustment Model, 8
-
Matolcsy Matolcsy, Wyatt Wyatt (2006)
Capitalized intangibles and financial analysisAccounting and Finance, 46
-
L. Brown, Andrew Call, Michael Clement, Nathan Sharp (2014)
Inside the 'Black Box' of Sell-Side Financial AnalystsApplied Accounting - Practitioner eJournal
-
S. Abhayawansa, M. Aleksanyan, John Bahtsevanoglou (2015)
The use of intellectual capital information by sell-side analysts in company valuationAccounting and Business Research, 45
-
Ulf Brüggemann, Joerg-Markus Hitz, T. Sellhorn (2012)
Intended and Unintended Consequences of Mandatory IFRS Adoption: A Review of Extant Evidence and Suggestions for Future ResearchEuropean Accounting Review, 22
-
Thomas Fields, Thomas Lys, Linda Vincent (2001)
Empirical Research on Accounting ChoiceHistory of Accounting eJournal
-
Peter Nilsson (1990)
The Distortion of Information -
Libby Libby, Bloomfield Bloomfield, Nelson Nelson (2002)
Experimental research in financial accountingAccounting, Organizations and Society, 27
-
William Samuelson, R. Zeckhauser (1988)
Status quo bias in decision makingJournal of Risk and Uncertainty, 1
-
Joanne Atkinson (2020)
Inside the black boxDiscrimination, Vulnerable Consumers and Financial Inclusion
-
Warwick Stent, M. Bradbury, J. Hooks (2017)
Insights into Accounting Choice from the Adoption Timing of International Financial Reporting StandardsEconometric Modeling: Financial Markets Regulation eJournal
-
R. Barker (1998)
The market for information—evidence from finance directors, analysts and fund managersAccounting and Business Research, 29
-
M. Hamberg, M. Paananen, J. Novak (2011)
The Adoption of IFRS 3: The Effects of Managerial Discretion and Stock Market ReactionsEuropean Accounting Review, 20
-
R. Barker (1999)
The Role of Dividends in Valuation Models used by Analysts and Fund ManagersEuropean Accounting Review, 8
-
Jarva Jarva (2009)
Do firms manage fair value estimates? An examination of SFAS 142 goodwill impairmentsJournal of Business Finance & Accounting, 36
-
M. Bradshaw (2009)
Analyst Information Processing, Financial Regulation, and Academic ResearchThe Accounting Review, 84
-
R. Hogarth, H. Einhorn (1992)
Order effects in belief updating: The belief-adjustment modelCognitive Psychology, 24
-
M. Bradshaw, Matthew Moberg, Richard Sloan (2000)
Gaap Versus the Street: An Empirical Assessment of Two Alternative Definitions of EarningsFinancial Accounting
-
(2008)
Identifiable Intangibles Recognised', IIR version) (SEKm) -
Cristi Gleason, W. Johnson, Haidan Li (2011)
Valuation Model Use and the Price Target Performance of Sell-Side Equity AnalystsSPGMI: Compustat Fundamentals (Topic)
-
J. Russo, V. Medvec, Margaret Meloy (1996)
The Distortion of Information during DecisionsOrganizational Behavior and Human Decision Processes, 66
-
R. Barker (2000)
FRS3 and analysts' use of earningsAccounting and Business Research, 30
-
X. Qu (2007)
Multivariate Data AnalysisTechnometrics, 49
-
R. Libby, R. Bloomfield, M. Nelson (2001)
Experimental Research in Financial AccountingBehavioral & Experimental Finance eJournal
-
Patric Andersson (2004)
Does experience matter in lending? A process-tracing study on experienced loan officers' and novices' decision behaviorJournal of Economic Psychology, 25
-
J. Russo, Margaret Meloy, T. Wilks (2000)
Predecisional Distortion of Information by Auditors and SalespersonsManagement Science, 46
-
(2010)
Valuation -Measuring and Managing the Value of Companies -
Theresa Libby (2010)
Discussion of “Avoiding Accounting Fixation: Determinants of Cognitive Adaptation to Differences in Accounting Method”*Contemporary Accounting Research, 22
-
Profit & loss statement ('Goodwill Only -
J. Yates, Stephanie Oliveira
Organizational Behavior and Human Decision Processes -
(2008)
European countries: company- and country-level determinants, Accounting and Business Research -
P. Asquith, Andrea Au, Michael Mikhail (2002)
Information Content of Equity Analyst ReportsS&P Global Market Intelligence Research Paper Series
-
Cheol Lee (2010)
The Effect of SFAS 142 on the Ability of Goodwill to Predict Future Cash FlowFinancial Accounting eJournal
-
Asquith (2005)
Information content of equity analyst reportsJournal of Financial Economics, 75
-
M. Glaum, P. Schmidt, D. Street, Silvia Vogel (2013)
Compliance with IFRS 3- and IAS 36-required disclosures across 17 European countries: company- and country-level determinantsAccounting and Business Research, 43
-
Ron Shalev, I. Zhang, Yong Zhang (2010)
CEO Compensation and Fair Value Accounting: Evidence from Purchase Price AllocationCGN: Executive Compensation (Topic)
-
Fields Fields, Lys Lys, Vincent Vincent (2001)
Empirical research on accounting choiceJournal of Accounting and Economics, 31
-
Chih-Ying Chen (2010)
Do analysts and investors fully understand the persistence of the items excluded from Street earnings?Review of Accounting Studies, 15
-
(2004)
Does experience matter in lending? Decision behavior -
J. Bischof, Holger Daske, Christoph Sextroh (2014)
Fair Value‐Related Information in Analysts’ Decision Processes: Evidence from the Financial CrisisARN Wiley-Blackwell Publishers Journals
-
(2008)
DCF analysis (GO and IIR versions) DCF model assumptions (SEKm) -
W. Stent, M. E. Bradbury, J. Hooks (2015)
Insights into accounting choice from the adoption timing of International Financial Reporting Standards forthcoming -
D. Zizzo (2008)
Experimenter demand effects in economic experimentsExperimental Economics, 13
-
Brown Brown, Call Call, Clement Clement, Sharp Sharp (2015)
Inside the ‘black box’ of sell‐side financial analystsJournal of Accounting Research, 53
-
Z. Matolcsy, A. Wyatt (2006)
Capitalized Intangibles and Financial AnalystsMicroeconomic Theory eJournal
-
P. Hopkins, R. Houston, Michael Peters (1999)
Purchase, Pooling, and Equity Analysts' Valuation JudgmentsFEN: Behavioral Finance (Topic)
-
S. Penman (2001)
Financial Statement Analysis and Security Valuation -
E. Beccalli, P. Miller, T. O'Leary (2015)
How Analysts Process Information: Technical and Financial Disclosures in the Microprocessor IndustryEuropean Accounting Review, 24
-
K. Trotman, H. Tan, N. Ang (2011)
Fifty-Year Overview of Judgment and Decision-Making Research in AccountingBehavioral & Experimental Accounting (Editor's Choice) eJournal
-
Shahed Imam, R. Barker, C. Clubb (2008)
The Use of Valuation Models by UK Investment AnalystsEuropean Accounting Review, 17
-
H. Jarva (2009)
Do Firms Manage Fair Value Estimates? An Examination of SFAS 142 Goodwill ImpairmentsARN Wiley-Blackwell Publishers Journals
-
Cristi Gleason, W. Johnson, Haidan Li (2013)
Valuation Model Use and the Price Target Performance of Sell-Side Equity Analysts*: Valuation Model Use and Price Target PerformanceContemporary Accounting Research, 30
-
Thomas Gilovich (1991)
How We Know What Isn't So: The Fallibility of Human Reason in Everyday Life -
(2007)
Judgment and Decision Making in Accounting (Pearson Education -
Lee Lee (2011)
The effect of SFAS 142 on the ability of goodwill to predict future cash flowsJournal of Accounting and Public Policy, 30
-
Bradshaw Bradshaw, Sloan Sloan (2002)
GAAP versus The Street: an empirical assessment of two alternative definitions of earningsJournal of Accounting Research, 40
-
Shahed Imam, Jacky Chan, S. Shah (2013)
Equity valuation models and target price accuracy in Europe : evidence from equity reportsInternational Review of Financial Analysis, 28
-
James Frederickson, J. Miller (2004)
The Effects of Pro Forma Earnings Disclosures on Analysts' and Nonprofessional Investors' Equity Valuation JudgmentsThe Accounting Review, 79
-
Efthimios Demirakos, N. Strong, M. Walker (2004)
What Valuation Models Do Analysts UseAccounting Horizons, 18
-
K. Ramanna, R. Watts (2011)
Evidence on the use of unverifiable estimates in required goodwill impairmentReview of Accounting Studies, 17
- Publisher
- Wiley
- Copyright
- Accounting and Finance © 2016 AFAANZ
- ISSN
- 0810-5391
- eISSN
- 1467-629X
- DOI
- 10.1111/acfi.12189
- Publisher site
- See Article on Publisher Site
Abstract
This article uses an experiment to investigate how professional financial analysts evaluate a corporate acquisition announced by an IFRS preparer. The findings suggest that professional analysts are affected by preparers' acquisition premium allocations in a potentially misleading way as the participants considered the acquisition to be value‐enhancing when the premium was allocated to goodwill, but value‐reducing when allocated to identifiable intangible assets. These effects were mitigated at the aggregate level when additional discounted cash flow analysis information was provided; however, there were significant differences in information search behaviour as quite many participants focused primarily on the exploitation of earnings information.
Journal
Accounting & Finance – Wiley
Published: Mar 1, 2016
Keywords: ; ; ;