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Possibility of Company Goodwill Valuation: Verification in Slovak and Czech Republic

Author

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  • Podhorska Ivana

    (University of Zilina, Department of Economics, Univerzitna 1, 010 26Zilina, Slovak Republic)

  • Valaskova Katarina

    (University of Zilina, Department of Economics, Univerzitna 1, 010 26Zilina, Slovak Republic)

  • Stehel Vojtech

    (The Institute of Technology and Business in Ceske Budejovice, School of Expertness and Valuation, Okruzni 517/10, 370 01Ceske Budejovice, Czech Republic)

  • Kliestik Tomas

    (University of Zilina, Department of Economics, Univerzitna 1, 010 26Zilina, Slovak Republic)

Abstract

The paper deals with the possibilities of company goodwill valuation and verification. The value of company goodwill is still an actual issue for the scientific community. Goodwill as an economic phenomenon has attracted the attention of economic experts since the nineteenth century. Nowadays, there are many approaches to goodwill valuation. However, its identification and quantification are still a challenge. The paper aim is to identify significant sources of company goodwill creation and their verification on the sample of 2 European countries with the similar business environment, political stability and regulatory platform - Slovak and Czech companies. The sample for the identification of significant sources of company goodwill creation consists of the financial statements of Slovak companies in 2015. The sample for data verification consists of the financial statements of Slovak and Czech companies in 2016. The paper identifies the determinants of goodwill creation by multiple regression analysis. The paper also verifies the total explanatory power of these determinants by matrixes of changes. Volatility and deviation of the results are captured by descriptive statistical methods. The paper’s results point to a necessity to identify the key determinants of goodwill creation. They bring the construction of an econometric model for company goodwill valuation. It could be used to compute the value of company goodwill of the individual companies in the Slovak economic conditions.

Suggested Citation

  • Podhorska Ivana & Valaskova Katarina & Stehel Vojtech & Kliestik Tomas, 2019. "Possibility of Company Goodwill Valuation: Verification in Slovak and Czech Republic," Management & Marketing, Sciendo, vol. 14(3), pages 338-356, September.
    • Handle: RePEc:vrs:manmar:v:14:y:2019:i:3:p:338-356:n:6
    DOI: 10.2478/mmcks-2019-0024
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    References listed on IDEAS

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    Cited by:

    1. Imhyeon Kim & Jinsoo Kim & Jeongyeon Kang, 2020. "Company Reputation, Implied Cost of Capital and Tax Avoidance: Evidence from Korea," Sustainability, MDPI, vol. 12(23), pages 1-16, November.

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