Cover Image

A comparative analysis of goodwill impairment in two ASEAN countries with different economic development

This study compares motives and constraints to the recognition choice related to reporting zero goodwill impairment of Malaysian listed firms with those of Singaporean listed firms from 2010 to 2012. Using a binary logistic regression, results reveal important differences with regards to potential d...

Full description

Saved in:
Bibliographic Details
Main Author: Abdul Majid, Jamaliah
Format: Conference or Workshop Item
Language:English
Published: 2016
Subjects:
HC Economic History and Conditions
Online Access:http://repo.uum.edu.my/25305/1/ICSED%202016%201%2016.pdf
http://repo.uum.edu.my/25305/
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.uum.repo.25305
record_format eprints
spelling my.uum.repo.253052018-12-12T06:30:06Z http://repo.uum.edu.my/25305/ A comparative analysis of goodwill impairment in two ASEAN countries with different economic development Abdul Majid, Jamaliah HC Economic History and Conditions This study compares motives and constraints to the recognition choice related to reporting zero goodwill impairment of Malaysian listed firms with those of Singaporean listed firms from 2010 to 2012. Using a binary logistic regression, results reveal important differences with regards to potential drivers and constraints to the recognition choice by listed companies between the two ASEAN countries. The Singaporean results appear to suggest that the recognition choice related to reporting zero goodwill impairment is driven by the desire to avoid debt covenant violation, whereas a high ratio of independent directors on the audit committee appears to restraint such recognition choice. Conversely, the Malaysian results seem to suggest that firms chose to exercise the recognition choice when the relative size of goodwill is small. However, the length of the CEO tenure appear to lessen such recognition choice. The findings of this study contributes to the literature on IFRS and accounting harmonization by supporting the view that having similar accounting standards may not necessarily imply that the financial statements of listed firms in the two countries are entirely comparable. Other factors, in particular, firms’ reporting incentives and the effectiveness of corporate governance mechanisms play important roles in influencing the financial statement comparability. The study also provides important implications for policy makers and relevant authorities, in that, to improve the comparability of the financial statements in the two ASEAN countries, the relevant authorities need to closely monitor firms’ reporting incentives and further strengthen the corporate governance mechanisms. 2016-11-01 Conference or Workshop Item PeerReviewed application/pdf en http://repo.uum.edu.my/25305/1/ICSED%202016%201%2016.pdf Abdul Majid, Jamaliah (2016) A comparative analysis of goodwill impairment in two ASEAN countries with different economic development. In: 1st International Conference on Social and Economic Development 2016 (ICSED2016), 1-3 November 2016, Universiti Malaysia Terengganu (UMT).
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Abdul Majid, Jamaliah
A comparative analysis of goodwill impairment in two ASEAN countries with different economic development
description This study compares motives and constraints to the recognition choice related to reporting zero goodwill impairment of Malaysian listed firms with those of Singaporean listed firms from 2010 to 2012. Using a binary logistic regression, results reveal important differences with regards to potential drivers and constraints to the recognition choice by listed companies between the two ASEAN countries. The Singaporean results appear to suggest that the recognition choice related to reporting zero goodwill impairment is driven by the desire to avoid debt covenant violation, whereas a high ratio of independent directors on the audit committee appears to restraint such recognition choice. Conversely, the Malaysian results seem to suggest that firms chose to exercise the recognition choice when the relative size of goodwill is small. However, the length of the CEO tenure appear to lessen such recognition choice. The findings of this study contributes to the literature on IFRS and accounting harmonization by supporting the view that having similar accounting standards may not necessarily imply that the financial statements of listed firms in the two countries are entirely comparable. Other factors, in particular, firms’ reporting incentives and the effectiveness of corporate governance mechanisms play important roles in influencing the financial statement comparability. The study also provides important implications for policy makers and relevant authorities, in that, to improve the comparability of the financial statements in the two ASEAN countries, the relevant authorities need to closely monitor firms’ reporting incentives and further strengthen the corporate governance mechanisms.
format Conference or Workshop Item
author Abdul Majid, Jamaliah
author_facet Abdul Majid, Jamaliah
author_sort Abdul Majid, Jamaliah
title A comparative analysis of goodwill impairment in two ASEAN countries with different economic development
title_short A comparative analysis of goodwill impairment in two ASEAN countries with different economic development
title_full A comparative analysis of goodwill impairment in two ASEAN countries with different economic development
title_fullStr A comparative analysis of goodwill impairment in two ASEAN countries with different economic development
title_full_unstemmed A comparative analysis of goodwill impairment in two ASEAN countries with different economic development
title_sort comparative analysis of goodwill impairment in two asean countries with different economic development
publishDate 2016
url http://repo.uum.edu.my/25305/1/ICSED%202016%201%2016.pdf
http://repo.uum.edu.my/25305/
_version_ 1644284286139891712
score 13.211869

Similar Items