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This study empirically examined financial analyses and a market assessment on goodwill. Goodwill is not an individually identifiable asset but is recognized as an intangible asset because it is viewed as having future economic benefits from a business combination. The verification period for this study was from 2011 to 2019. The sample companies we...
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... verify the difference between the mean values of two groups between KOSPI firms and KOSDAQ firms, this paper analyzed the t-test. Table 4 shows that there was a significant difference between the mean of each variable. As a result of the t-test, all variables showed significant differences between the two groups. ...Similar publications
Financial statements, being the representations of the management primarily to the shareholders as their employers are expected to attract a reaction in line with the proprietary theoretical framework. This study was borne out of the quest to assess the reliance of the common stockholders on the financial statement information with respect to profi...
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... Intangible assets (I NTAN it ) show a similar pattern in their effect on BTD as economic crises do-positively influencing total BTD and permanent differences, albeit orthogonal to temporary differences. These findings suggest that the accounting treatment of intangible assets may afford managers substantial discretion [176] and receive comparatively less scrutiny from auditors [177]. As noted by Gao et al. [178], the productivity of a company's intellectual property, such as patents, relates positively to its tax avoidance strategies. ...
This study investigates the intricate relationship between corporate financial strategies, encapsulated by book-tax differences (BTDs), and firms’ engagement in corporate social responsibility (CSR) programs during economic crises. Using an unbalanced panel dataset drawn from financial, annual, and sustainability reports of over 97 Indonesian non-financial firms from 2017 to 2022, this study reveals that economic crises and CSR activities positively influence total BTD and permanent differences. Notably, firms strategically leverage CSR initiatives amidst crises to enhance their corporate image and manage internal challenges like aggressive tax planning. The robustness of these findings was validated through endogeneity analysis and by examining sub-samples from industries most impacted by the pandemic. In the industries least affected by the pandemic, the direct impact of CSR on BTD was found to be negative, indicating that in the general context, the CSR programs held by these industries are largely driven by normative motives. However, when specified in the crisis context, CSR serves as a strategic buffer for these industries, which reaffirms the prevalence of CSR strategic motives during Indonesia’s pandemic challenges. The findings suggest policy implications for shareholders, regulators, and policymakers to ensure CSR transparency aligns with long-term corporate values and societal impact, incentivizing genuine CSR practices amidst economic uncertainty. Despite its contributions, the study recommends future research explore different domains of CSR and validate findings across diverse contexts to enrich the understanding of CSR’s role in corporate resilience strategies.
... Ji, H. empirically analyzed the business value and 3 significance of corporate goodwill based on the data of many companies. It was learned that there is a correlation between the company's business reputation and the company's market value, which can be regarded as an intangible asset and has the potential to promote the growth of the company's economic efficiency [19]. This paper addresses the requirements of association rule generation processes and results in the field of security assessment of company financial systems, and mines data from the financial system to generate association rules. ...
The security assessment of corporate financial systems has become a popular area of research, although few results have been published so far. This research focuses on integrating the association rule algorithm with Bayesian networks to evaluate the security of corporate financial systems. It primarily employs Bayesian networks to calculate the conditional probability, prior joint probability, and posterior probability of each attribute node in the IDRI-Tree to assess the security of the company’s financial system. Additionally, abnormal data from Company A’s financial system were collected to evaluate the method’s effectiveness. The results indicate that Company A’s financial system has data discrepancy compliance rates of 98.92% and 96.50%, respectively. The security assessment scores for monitoring, evaluation, and assessment in financial system security are the lowest, averaging 1.41, while the scores for payment, service, and support are the highest, averaging 3.32. The financial system security assessment method proposed in this paper demonstrates high practical value and offers a reference for the future establishment and improvement of financial system security assessment methods.
... It can transform from manual management to intelligent management, realize the standardization, process, and intelligence of enterprise financial management, and then form the value effect of the enterprise [8][9]. The management mode of the financial shared resource base of enterprises, i.e., financial data center, mainly refers to the reliance on information technology to strengthen the financial management function of enterprises, and the localized or modularized financial data and business responsibilities, and the corresponding process reengineering or resource integration to form a professional, procedural and process-oriented enterprise financial resource management mode [10][11][12]. ...
This paper uses an adaptive load-balancing algorithm to calculate an intelligent terminal platform on the basis of an enterprise financial information-sharing model. Firstly, a new server performance evaluation index is established based on the hierarchical analysis method, and the load performance of each node is reacted using the influence factors. Then a judgment matrix is constructed for the set of evaluation factors based on the change in the average load utilization rate of nodes. Finally, the results of the matrix are normalized to derive the evaluation weights of each node of the server, which completes the construction of the intelligent terminal platform. An enterprise’s quarterly bills for 2018-2020 were selected for analysis, and after running the financial information sharing, the processing time of a single voucher could be saved by 0.3 hours. It shows that the constructed information-sharing resource base can not only significantly reduce operation costs but also access the business data of subsidiaries at any time to effectively prevent operation risks.
... The essence of this method is that the quality assessment is carried out on the basis of a comparison of the evaluated object with analogues that have the best and worst quality indicators. The coefficient of utility (quality) is calculated according to the following formula (Ji, 2020): ...
"The article shows that the development of digital economy provides opportunities for expanding the factors influencing the formation of goodwill. Approaches to understanding and formulating the concept of goodwill, its place and role in the landscape of intangible assets, as well as the features of calculation and reflection in accounting in general and in the conditions of the digital economy are considered. The phenomenon of a sharp increase in the market value of “digital companies” since the beginning of the 21st century, as well as a significant shift in the distribution of value factors towards intangible assets, is described. The need for further improvement of the regulatory and legislative support of accounting for intangible assets in the digital economy, including techniques and methods for evaluating intangible assets and goodwill in particular, is noted, which should ensure the introduction of the most rational of them into the regulatory and legislative framework for intangible assets accounting."
... Many studies have argued that a substantial argument against intangibles capitalization is earnings management (Triki-Damak, Halioui, 2013;Garanina, Nikulin, Frangulantc, 2016). This is because accounting for intangible assets includes a lot of discretion for managers (Ji, 2020) and intangible assets do not get enough attention from auditors (Istanti, Chariri, Juliarto, 2021). ...
... Several previous studies stated that accounting for intangible assets and goodwill includes a lot of discretion for managers and involves judgments and estimates, leading to biased situations. Consequently, most of those studies argued that accounting for intangible assets and goodwill provides windows for earnings management (Watts, 2003(Watts, , 2006Jordan et al., 2007;Jones, 2011;Nwogugu, 2015;Ji, 2020;Gaioet al., 2021). In this study, we investigated the impact of accounting treatments of intangible assets and goodwill on earnings management for France as a code law country and the UK as a common law country (Mora, Walker, 2015;Kimouche, 2020), so managers adopt accounting choices following their tendencies towards conservatism since accounting treatments reflect different levels of conservatism. ...
Research background: The literature has argued that accounting for intangible assets and goodwill provides a wide range for managers to manipulate earnings.
Purpose: This paper aims to investigate the impact of accounting treatment of intangible assets and goodwill on earnings management.
Research methodology: The study included 115 French companies and 100 UK companies, during 2011–2019, employing multiple regression, where earnings management was measured through discretionary accruals; while accounting for intangibles and goodwill was divided into the capitalization and decapitalization of intangible assets, recognition and derecognition of goodwill, and depreciation and impairment of intangible assets and goodwill.
Results: According to the results, accounting for intangible assets and goodwill has an impact on earnings management, while it is used differently between French and UK companies. In France, companies employ intangible assets capitalization to manipulate earnings, while UK companies use intangible assets capitalization and goodwill recognition.
Novelty: This study provides supplementary evidence for standards setters, managers, and auditors about the contribution of accounting for intangible assets and goodwill in the quality of financial reporting and explores the new tools and practices of earnings management.
... On the other hand, financial scandals force companies to place more emphasis on corporate governance practices and financial transparency [21][22][23]. In this context, one of the main qualitative characteristics of accounting information is credibility, which implies the absence of significant errors, a lack of bias, and the correct and reasonable representation of reality, attributes that exclude the use of creative accounting practices [24][25][26]. ...
In today’s business environment, corporate governance and financial transparency have an impact on the performance of firms. These changes are important for understanding the widespread accessibility of relevant and reliable information regarding an entity’s financial and nonfinancial aspects. The purpose of this study was to show how the environmental, social, and governance disclosure performance of companies has gained a reputation of having a fundamental role in financial transparency and how it varies by stakeholder orientation and economic sector. In this regard, we developed a new model based on stakeholders’ perceptions to analyze the impact of environmental, social, and governance disclosure on financial transparency using the Analytic Hierarchy Process (AHP) method and select the economic sector that ensures transparency in sustainable and financial reporting. This model was applied over the 2008–2018 period to 143 companies from eight countries in the most representative economic sectors: finance, energy, and telecommunication services. Our results portray that environmental, social, and governance reporting are a company’s means of communication with stakeholders, as part of their accountability and stewardship obligations, and at the same time, they are a tool for achieving transparency regarding the financial performance of a firm. Furthermore, our findings also showed whether environmental, social, and governance (ESG) disclosures act as a vector of financial communication for enterprises, and this relationship will also be evident in their role in financial transparency.
The United Nations (UN), one of the international organizations, carries out various studies within the framework of their objectives for protecting the environment for sustainable development and against the climate crisis. This study is also an academic written source that supports the UN's goals. This study conducted a bibliometric analysis of 128 articles scanned in the Web of Science SSCI index within the scope of sustainability accounting standards. Because of the study, it is noteworthy that there has been an increase in the number of publications on sustainability accounting standards after 2017. In recent years, enterprises have increased awareness about sustainability, and accordingly, they attach importance to environmental practices in the production process. Another finding is that the publications are mostly co-authored, and these authors are from different countries. In this regard, it was observed that the authors who contributed the most works were from Spain. As a result of creating a word cloud image, it was determined that the word sustainability was the most frequently used keyword. The analysis revealed that the journal "Sustainability" publishes the most works on this subject. This study, a reference source for new studies, is thought to contribute to the international literature.
Although hotel guests have controlled quick accessibility to force hoteliers instantly update their hotel room rates, little has focused on guest comments and average daily rate. The purpose of the paper is to examine the relationship between hotel average daily rate (ADR), revenue per available room (RevPAR), and goodwill and guests’ motivation for location, rooms, value, cleanliness, service, and sleep quality.
The study has designed to use consumer motivation at the unconscious level to examine the relationship between hoteliers’ price and guests’ preference at the conscious level. Linguistic Inquiry and Word Count was used to retrieve the consumer motivation at the unconscious level. Structural Equation Modeling was conducted to examine the relationships among the exogenous variables including ADR, RevPAR, and goodwill and the endogenous variables including location, rooms, value, cleanliness, service, and sleep quality that were mediated by the unconscious motivation of hotel guests.
The results from the study revealed pertinent information about customer preferences. ADR would be associated with location, value and rooms. RevPAR would be associated with cleanliness and service. Finally, hotel goodwill would be associated with sleep quality.
Although the small sample size of 163 guest comments is the limitation of the study for generalization, the sample randomly selected for 13 years (2009–2022) has identified the different effects of ADR, RevPAR, and Goodwill on each of the 6 hotel criteria to contribute to hotel marketing strategies.
