149,629 research outputs found

    Optimal Goodwill Model with Consumer Recommendations and Market Segmentation

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    We propose a new dynamic model of product goodwill where a product is sold in many market segments, and where the segments are indicated by the usage experience of consumers. The dynamics of product goodwill is described by a partial di erential equation of the Lotka{Sharpe{ McKendrick type. The main novelty of this model is that the product goodwill in a segment of new consumers depends not only on advertising e ort, but also on consumer recommendations, for which we introduce a mathematical representation. We consider an optimal goodwill model where in each market segment the control variable is the company's advertising e orts in order to maximize its pro ts. Using the maximum principle, we numerically nd the optimal advertising strategies and corresponding optimal goodwill paths. The sensitivity of these solutions is analysed. We identify two types of optimal advertising campaign: `strengthening' and `supportive'. They may assume di erent shapes and levels depending on the market segment. These experiments highlight the need for both researchers and managers to consider a segmented advertising polic

    The impact of valuation rules for intangible assets in Japanese and German accounts of listed companies : [Version April 2003]

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    Intangible assets as goodwill, licenses, research and development or customer relations become in high technology and service orientated economies more and more important. But comparing the book values of listed companies and their market capitalization the financial reports seems to fail the information needs of market participants regarding the estimate of the proper firm value. Moreover, with the introduction of Anglo-American accounting systems in Europe and Asia we can observe even in the accounts of companies sited in the same jurisdiction diverging accounting practices for intangible assets caused by different accounting standards. To assess the relevance of intangible assets in Japanese and German accounts of listed companies we therefore measure certain balance sheet and profit and loss relations according to goodwill and self-developed software. We compare and analyze valuation rules for goodwill and software costs according to German GAAP, Japanese GAAP, US GAAP and IAS to determine the possible impact of diverging rules in the comparability of the accounts. Our results show that the comparability of the accounts is impaired because of different accounting practices. The recognition and valuation of goodwill and self-developed software varies significantly according to the accounting regime applied. However, for the recognition of self-developed software, the effect on the average impact on asset coefficients or profit is not that high. Moreover, an industry bias can only be found for the financial industry. In contrast, for goodwill accounting we found major differences especially between German and Japanese Blue Chips. The introduction of the new goodwill impairment only approach and the prohibition of the pooling method may have a major impact especially for Japanese companies’ accounts

    Preliminary Evidence of the Effects of the Adoption of the Impairment-Only Approach to Goodwill Accounting in Sweden

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    We examine the effects of the implementation of the impairment-only approach to goodwill accounting on the financial reporting quality in Sweden after the adoption of IFRS. Using accounting data from public companies in Sweden, we test the value relevance and timeliness of the accounting information before and after the switch to IFRS. We compare the value relevance of accounting information between 2004 and 2005 to investigate the effects of the switch from goodwill amortization to the impairment-only approach. We find some weak evidence of an increase in the value relevance of accounting information among companies with substantial goodwill balances in proportion to total assets. However, we find no statistically significance in the incremental value relevance related to amortization charges, impairment charges, or intangible assets, on share prices between the two periods. Moreover, we find no evidence of increased timeliness or any association between timeliness in reported earnings in 2005 and impairment charges made in that year

    'Goodwill is not enough'

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    The stochastic goodwill problem

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    Stochastic control problems related to optimal advertising under uncertainty are considered. In particular, we determine the optimal strategies for the problem of maximizing the utility of goodwill at launch time and minimizing the disutility of a stream of advertising costs that extends until the launch time for some classes of stochastic perturbations of the classical Nerlove-Arrow dynamics. We also consider some generalizations such as problems with constrained budget and with discretionary launching

    Pengaruh Tipe Industri, Ukuran Perusahaan, Latar Belakang Komite Audit, Intensitas Goodwill, dan Kualitas Audit Terhadap Kepatuhan Pengungkapan Goodwill Impairment Testing

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    Abstract The purpose of this study is to examine the effect of industrial type, company size, audit committee background, intensity of goodwill, and auditor quality on the disclosure of goodwill impairment testing compliance of firms listed on Indonesia Stock Exchange in the period of 2013-2017. It argues that manufacturing companies have higher operational complexity relative to other type of industry and thus disclose more information regarding firm’s activities, including information on goodwill impairment testing compliance. The results support the prediction. With regard to firm size, goodwill intensity, and auditor quality, the hypoyheses predict that these variables are positively associated with goodwill impairment testing compliance. The resultus support these predictions. Meanwhile, audit committee's background has no effect on the disclosure of goodwill impairment testing compliance. Keywords: Goodwill, Impairment testing, Goodwill Intensity, and Auditor Quality Abstrak Penelitian ini bertujuan untuk mengetahui pengaruh tipe industri, ukuran perusahaan, latar belakang komite audit, intensitas goodwill, dan kualitas auditor terhadap kepatuhan pengungkapan goodwill impairment testing pada perusahaan yang terdaftar di Bursa Efek Indonesia tahun 2013-2017. Tipe industri diprediksi mempengaruhi pengungkapan goodwill impairment testing karena perusahaan yang masuk kelompok industri manufaktur beroperasi dalam industri yang kompleks sehingga harus mengungkapkan lebih banyak informasi dibanding tipe industri lain, termasuk informasi tentang pengungkapan goodwill impairment testing. Ukuran perusahaan, intensitas goodwill, dan kualitas audit diprediksi berpengaruh positif terhadap kepatuhan pengungkapan goodwill impairment testing. Hasil pengujian juga mendukung prediksi tersebut. Sementara itu, Latar belakang komite audit tidak berpengaruh terhadap kepatuhan pengungkapan goodwill impairment testing. Kata kunci : Goodwill, Impairment testing, Intensitas Goodwill, dan Kualitas Audito

    Resistance to Change

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    Established firms often fail to maintain leadership following disruptive market shifts. We argue that such firms are more prone to internal resistance. A radical adjustment of assets affects the distribution of employee rents, creating winners and losers. Losers resist large changes when strong customer goodwill cushions the consequences. Partial adaptation may lead winners to depart to form new firms with no goodwill, but no internal resistance.Resistance to Change, Leadership, Adaptation