Information risk – the uncertainty regarding the parameters of the distribution of firms’ future cash flows – generates valuation errors and is costly to investors who require a higher return to compensate for greater information risk. We argue that, on average, through their...

This study investigates the informativeness of purchase price allocations (PPAs) that involve fair value estimation of acquired assets and liabilities after a business combination. Using a model capturing the amount of goodwill expected after the initial announcement of an acquisition, we...

Using a sample of firms from France, where the law requires use of two auditors, we examine the effect of auditor pair composition on overall measures of unconditional and conditional conservatism, as well as on a specific measure of conditional conservatism, i.e., impairment loss. We use game...

The goodwill is, by nature, complex since this notion encompasses two realities: the first is an economic concept – the expected present value of economic profits – the second is an accounting aggregate – the excess of the acquirer’s purchase price over the fair values of the target’s...

Regarding the decline of book-to-market ratio, resulting from a very imperfect recognition of intangible capital, this paper aims to examine the foundation of organization capital measurement. By using the rule of representation (Ijiri, 1975), which indicates a lack of isomorphism between the...

L'ouvrage présente et discute les méthodes d'évaluation pertinentes dans le cadre préparatoire au reporting financier en normes IFRS.

In this paper we propose a new method to explain the creation and measure the value of internally generated goodwill (IGG). Our method is based on the idea that firm value is affected by interactions between assets used in combination to conduct business. This novel approach contrasts with the...