Family and Government-Controlled Firms and their Recognition of Goodwill Impairment
DOI:
https://doi.org/10.66674/a79nnj90Keywords:
Corporate governance, family-controlled firm, financial accounting goodwill impairment, government-controlled firmAbstract
Abstract: Given a highly concentrated family and government ownership in Malaysia, this paper argues that family and government control could have some influence on a firm's recognition of goodwill impairment. The 'entrenchment effect' in a controlling firm which results in expropriation of minority shareholder assets may reduce a firm's value. Therefore, the effect increases the tendency of managers to manipulate earnings. Evidence shows that family-controlled firms are more likely to record goodwill impairment than non family-controlled firms. The results are, however, not significant in government-controlled firms. Similar evidence with prior studies is found where Malaysian firms are more likely to recognize goodwill impairment loss in their first year of adoption than in the subsequent years.
Downloads
Downloads
Published
Issue
Section
License
Copyright (c) 2011 Noraini Omar, Norman Mohd-Saleh, Mohd Fairuz Mohd Salleh (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant Capital Markets Review the right of first publication. Articles are published under the Creative Commons Attribution 4.0 International (CC BY 4.0) licence: https://creativecommons.org/licenses/by/4.0/. This licence permits sharing and adaptation for any purpose, including commercial use, provided appropriate credit is given, a link to the licence is supplied and any changes are indicated. Third-party material excluded from the article's licence must be clearly identified, and authors are responsible for obtaining any required permission.
