Purpose – To examine whether the provisions of SFAS No. 142 allow for the earnings management technique termed “big bath” and whether firm size plays a role in earnings management. Design/methodology/approach – A random selection of companies with December 31, 2002 fiscal year‐ends...

Purpose – This paper seeks to examine whether companies are providing transparent financial disclosures in compiling with the provisions of SFAS No. 142, “Goodwill and Other Intangible Assets”, and to determine whether the adequacy of these disclosures is impacted by firm size....