A Risk Assessment of Intangible Asset Valuation: The Post-Hoc Association between Goodwill Impairments and Risk Hazards in Mergers and Acquisitions

We tested whether the change from SFAS 141 to SFAS 141r/ASC 805 had any effect on restatements due to goodwill impairment. Our findings suggest that the implementation of SFAS 141r increased the likelihood of a financial restatement by 2.5 times. Board of Director and Audit Committee involvement in the goodwill impairment decision reduced the likelihood of a restatement occurring. Service industry companies were 3.2 times more likely to restate their assets due to goodwill impairment. Companies who were audited by a Big4 firm reduced the odds of restatement by 47%

Do Court Preferences for Valuation Approaches of Closely Held Companies Vary by Industry?

This study investigates whether the valuation approaches for closely held companies preferred by courts vary by industry type. Our difference of means tests find that income valuation approaches are preferred by courts over either asset or market approaches for cases involving the valuation of manufacturing companies, while market valuation approaches are preferred for cases involving the valuation of holding companies. We do not find any significant differences between companies categorized as tangible and intangible. Our multivariate tests further indicate that income approaches are approximately five times more likely to be preferred for manufacturing companies than other types of companies.

A Quantitative Approach to Commercial Damages : Applying Statistics to the Measurement of Lost Profits

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