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DETERMINANTS OF GOODWILL AMORTIZATION PERIOD
Author(s) -
Hall Steven C.
Publication year - 1993
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1993.tb00279.x
Subject(s) - goodwill , amortization , leverage (statistics) , business , earnings before interest, taxes, depreciation, and amortization , period (music) , book value , accounting , debt , sample (material) , economics , monetary economics , finance , mathematics , statistics , physics , chemistry , earnings , chromatography , acoustics
This study investigates whether economic consequences have an effect on the length of the period over which goodwill is amortized. It finds that there is a significant relationship between the size of the firm and the length of the amortization period. It also finds, when the only firms included in the sample are those reporting debt covenant restrictions dependent in part on goodwill accounting, evidence that the length of the amortization period for goodwill is related to the firm's leverage.