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Goodwill and Its Effect on Share Price of Manufacturing and Nonmanufacturing Companies

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  • Martin Kedron

    (Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

Abstract

This research examines how goodwill is relevant to share price on a sample of European companies with goodwill. The dataset includes 7,253 European companies broken down by sector according to the NACE classification in the period 2009-2017. Linear regression analysis was used to identify the effect of goodwill on share price. It was found out that goodwill has a positive effect on share price in manufacturing companies. These results suggest that the information contained in goodwill should be more identified to provide users of reporting with more information.

Suggested Citation

  • Martin Kedron, 2020. "Goodwill and Its Effect on Share Price of Manufacturing and Nonmanufacturing Companies," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(2), pages 373-381.
    • Handle: RePEc:mup:actaun:actaun_2020068020373
    DOI: 10.11118/actaun202068020373
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    References listed on IDEAS

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