We test whether an impending change in the accounting for goodwill mitigates bias in the initial values that acquirers assign to intangible assets. Results of two experiments with experienced professional participants suggest that the new accounting alters, but does not eliminate, bias in...

Persistent competitive pressure induced by globalization, deregulation and technological changes has forced the companies to rely on continuous innovations for survival and growth. Innovation, in turn, is primarily achieved by the investment of intangible assets. It is, therefore, hardly...