The impact of industry competition on the value relevance of goodwill impairments across different information environments
<p>Building upon prior studies that explore the impact of competition on financial reporting quality, this paper investigates the influence of industry-level competition on the value relevance of goodwill impairments. Additionally, it examines whether this impact is more pronounced for firms o...
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| مؤلفون آخرون: | , , |
| منشور في: |
2024
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| _version_ | 1864513545998172160 |
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| author | Ahmad Alshehabi (17152153) |
| author2 | Hussein Halabi (6103538) Sami Adwan (21393983) Sabri Boubaker (15523046) |
| author2_role | author author author |
| author_facet | Ahmad Alshehabi (17152153) Hussein Halabi (6103538) Sami Adwan (21393983) Sabri Boubaker (15523046) |
| author_role | author |
| dc.creator.none.fl_str_mv | Ahmad Alshehabi (17152153) Hussein Halabi (6103538) Sami Adwan (21393983) Sabri Boubaker (15523046) |
| dc.date.none.fl_str_mv | 2024-06-29T03:00:00Z |
| dc.identifier.none.fl_str_mv | 10.1016/j.intaccaudtax.2024.100639 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/The_impact_of_industry_competition_on_the_value_relevance_of_goodwill_impairments_across_different_information_environments/29109386 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Commerce, management, tourism and services Accounting, auditing and accountability Banking, finance and investment Marketing Value relevance Goodwill impairment Product market competition Information environment |
| dc.title.none.fl_str_mv | The impact of industry competition on the value relevance of goodwill impairments across different information environments |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <p>Building upon prior studies that explore the impact of competition on financial reporting quality, this paper investigates the influence of industry-level competition on the value relevance of goodwill impairments. Additionally, it examines whether this impact is more pronounced for firms operating in countries with rich information environments. We analyze 21,224 firm-year observations from companies in 21 countries that reported under International Financial Reporting Standards (IFRS). We find that companies facing higher product market competition tend to report impairment losses that are relevant to investors’ equity valuation decisions. This is consistent with the notion that companies in competitive industries are subject to greater scrutiny and have fewer incentives to manipulate their impairment reporting. We also find that the impact of industry competition on the value relevance of goodwill impairments is more pronounced in the rich information environments of market-based economies than bank-oriented economies. These findings underscore the impact of competition and its interplay with the information environment on the market perception of accounting information that is subject to managerial discretion.</p><h2>Other Information</h2> <p> Published in: Journal of International Accounting, Auditing and Taxation<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.intaccaudtax.2024.100639" target="_blank">https://dx.doi.org/10.1016/j.intaccaudtax.2024.100639</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_fb40d9496f2d545f7f7d509e3cb96caf |
| identifier_str_mv | 10.1016/j.intaccaudtax.2024.100639 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/29109386 |
| publishDate | 2024 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | The impact of industry competition on the value relevance of goodwill impairments across different information environmentsAhmad Alshehabi (17152153)Hussein Halabi (6103538)Sami Adwan (21393983)Sabri Boubaker (15523046)Commerce, management, tourism and servicesAccounting, auditing and accountabilityBanking, finance and investmentMarketingValue relevanceGoodwill impairmentProduct market competitionInformation environment<p>Building upon prior studies that explore the impact of competition on financial reporting quality, this paper investigates the influence of industry-level competition on the value relevance of goodwill impairments. Additionally, it examines whether this impact is more pronounced for firms operating in countries with rich information environments. We analyze 21,224 firm-year observations from companies in 21 countries that reported under International Financial Reporting Standards (IFRS). We find that companies facing higher product market competition tend to report impairment losses that are relevant to investors’ equity valuation decisions. This is consistent with the notion that companies in competitive industries are subject to greater scrutiny and have fewer incentives to manipulate their impairment reporting. We also find that the impact of industry competition on the value relevance of goodwill impairments is more pronounced in the rich information environments of market-based economies than bank-oriented economies. These findings underscore the impact of competition and its interplay with the information environment on the market perception of accounting information that is subject to managerial discretion.</p><h2>Other Information</h2> <p> Published in: Journal of International Accounting, Auditing and Taxation<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.intaccaudtax.2024.100639" target="_blank">https://dx.doi.org/10.1016/j.intaccaudtax.2024.100639</a></p>2024-06-29T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.intaccaudtax.2024.100639https://figshare.com/articles/journal_contribution/The_impact_of_industry_competition_on_the_value_relevance_of_goodwill_impairments_across_different_information_environments/29109386CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/291093862024-06-29T03:00:00Z |
| spellingShingle | The impact of industry competition on the value relevance of goodwill impairments across different information environments Ahmad Alshehabi (17152153) Commerce, management, tourism and services Accounting, auditing and accountability Banking, finance and investment Marketing Value relevance Goodwill impairment Product market competition Information environment |
| status_str | publishedVersion |
| title | The impact of industry competition on the value relevance of goodwill impairments across different information environments |
| title_full | The impact of industry competition on the value relevance of goodwill impairments across different information environments |
| title_fullStr | The impact of industry competition on the value relevance of goodwill impairments across different information environments |
| title_full_unstemmed | The impact of industry competition on the value relevance of goodwill impairments across different information environments |
| title_short | The impact of industry competition on the value relevance of goodwill impairments across different information environments |
| title_sort | The impact of industry competition on the value relevance of goodwill impairments across different information environments |
| topic | Commerce, management, tourism and services Accounting, auditing and accountability Banking, finance and investment Marketing Value relevance Goodwill impairment Product market competition Information environment |