Värderelevansen av goodwill

Sammanfattning

Title: The value relevance of goodwill Seminar date: June 3th 2022 Course: FEKH69, Degree Project, Business Administration, Undergraduate level, 15 UPC Authors: Albin Johansson, David Larsson & Jacob Svensson Advisor: Maria Gårdängen Key words: goodwill, value relevance, accounting harmonization, market efficiency & the nature of goodwill Research question: Does the value relevance of goodwill differ between the telecommunication sector and the food production sector? If differences can be identified, what do they stem from? Purpose: The purpose of the study is to compare the value relevance of goodwill in the food production sector and the telecommunication sector and explain potential differences in the value relevance of goodwill. Methodology: The study uses a multivariable regression analysis to examine the value relevance of the largest 80 companies in each sector during the years 2009, 2013 and 2018. The result of the regression analysis is analyzed using theories and earlier research concerning market efficiency, accounting harmonization and the nature of goodwill. Theoretical perspectives: The theoretical base consists of the effective market hypothesis and theories regarding the nature of goodwill. Two theories regarding the nature of goodwill are presented: the theory of excess earnings and the theory of underlying assets. Result: The result from the regression analysis shows a difference in the value relevance of goodwill between the sectors in the sample. The value relevance in the food production sector is greater than in the telecommunication sector for all three observations. Conclusion: A notable difference in the value relevance of goodwill in the sample suggests a difference between the sectors overall. Three explanatory factors were identified: differences in market efficiency, lacking accounting harmonization and the nature of goodwill. The results of the study suggest further research regarding whether there is a need for sector specific accounting regulation of goodwill or if additional information in financial reporting regarding the asset is needed.