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What drives the allocation of the purchase price to goodwill?
2015
Journal of Contemporary Accounting and Economics
This study examines the proportion of the purchase price allocated to goodwill after the successful acquisition of a publicly listed firm. Using hand collected data we document that 42% of acquirers record a nil amount for goodwill. We find that the amount allocated to goodwill is generally unrelated to target firm economic characteristics. In contrast, consistent with managerial opportunism we find a positive association between the use of accounting based bonus plans to compensate acquiring
doi:10.1016/j.jcae.2015.10.002
fatcat:d7m6oi7eivfyhidrebomacun5a