dc.contributor.advisor Habib, Ahsan
dc.contributor.author Balachandra, Jega
dc.date.accessioned 2012-11-14T20:46:37Z
dc.date.available 2012-11-14T20:46:37Z
dc.date.copyright 2012
dc.date.created 2012
dc.date.issued 2012-11-15
dc.identifier.uri http://hdl.handle.net/10292/4715
dc.description.abstract This study aims to examine whether a manager uses discretion in determining impairment loss on goodwill in the years subsequent to the adoption of International Accounting Standards (IAS) 36, based on executive incentives and corporate governance characteristics. This study was conducted on 66 New Zealand companies which were listed on the New Zealand (Stock) Exchange (NZX) from 2008 – 2010. The research design is developed as a hypothetical model to test the question of whether bonus-based incentives, in-the-money options, and strength of board influence goodwill impairment charges. This study uses a dichotomous logistic regression model to predict the goodwill impairment loss (GIL) with economic performance, executive incentives and corporate governance explanatory variables. Test results reveal that managers’ reporting incentives affect their decisions to recognise goodwill impairment when the managers have sizable holdings of in-the-money stock options. Results indicate a strong, positive association between managers’ discretion to recognise the goodwill impairment loss and the strength of corporate governance characteristics, especially the percentage of outside directors’ ownership. The evidence found in this study is consistent with prior literature showing that strong corporate governance constrained executive incentives in manager’s decisions to recognise goodwill impairment or not. en_NZ
dc.language.iso en en_NZ
dc.publisher Auckland University of Technology
dc.subject Impairment; In-the-money option; Bonus; Independence; Management discretion; Fairvalue; Value in use en_NZ
dc.subject Corporate governance en_NZ
dc.title Goodwill Impairment Charges under (NZ)36: role of executives' incentives and corporate governance en_NZ
dc.type Thesis
thesis.degree.grantor Auckland University of Technology
thesis.degree.level Masters Dissertations
thesis.degree.name Master of Business en_NZ
thesis.degree.discipline
dc.date.updated 2012-11-14T09:08:17Z

Search Scholarly Commons


Advanced Search

Browse

Theses and Dissertations

About Scholarly Commons

Usage Statistics

Share

  • Bookmark and Share