caa a22 4500 605486298 CHVBK 20210128100445.0 cr unu---uuuuu 210128e20151101xx s 000 0 eng 10.1007/s10551-014-2303-8 doi (NATIONALLICENCE)springer-10.1007/s10551-014-2303-8 How Ethical are Managers' Goodwill Impairment Decisions in Spanish-Listed Firms? [Elektronische Daten] [Begoña Giner, Francisca Pardo] This article provides an analysis of the ethical behavior of managers making goodwill impairment decisions following the adoption of the International Financial Reporting Standard (IFRS) 3 on Business Combinations. Replacing the systematic amortization of goodwill with the impairment-only approach has been a highly controversial step. Although the aim of IFRS 3 was to provide users with more value-relevant information regarding the underlying economics of the business, it has been criticized for the potential earnings management inherent in impairment testing. This study is based on a sample of Spanish-listed companies between 2005 and 2011, a period that embraces the economic crisis. After controlling for the underlying economic factors of the firms, the results suggest that managers are exercising discretion in the reporting of goodwill impairment losses, and big bath and smoothing strategies are influencing the decisions, whether or not to impair goodwill and about the magnitude of the impairment. Firm size is an attribute that appears significant in the analysis, suggesting that the cost and complexity of running the impairment test affect managers' decisions. Additional analyses suggest that the macroeconomic environment influences opportunistic and unethical behaviors. Springer Science+Business Media Dordrecht, 2014 Accounting ethics nationallicence Business combinations nationallicence Earnings management nationallicence Goodwill impairment nationallicence IFRS 3 nationallicence Managerial ethical behavior nationallicence Spain nationallicence CGU : Cash-generating unit nationallicence EU : European Union nationallicence EUR : Euro nationallicence EFRAG : European Financial Reporting Advisory Group nationallicence ESMA : European Securities and Markets Authority nationallicence FASB : Financial Accounting Standards Board nationallicence GAP : General accounting plan nationallicence GDP : Gross domestic product nationallicence IAS : International Accounting Standards nationallicence IASB : International Accounting Standards Board nationallicence IFRS : International Financial Reporting Standards nationallicence IOS : Investment opportunity set nationallicence M&A : Mergers and acquisitions nationallicence OLS : Ordinary least squares nationallicence SFAS : Statement of Financial Accounting Standards nationallicence UK : United Kingdom nationallicence US : United States nationallicence USA : United States of America nationallicence USD : United States Dollar nationallicence USGAAP : United States generally accepted accounting principles nationallicence Giner Begoña Department of Accounting, University of Valencia (Spain), Avenida dels Tarongers s/n, 46071, Valencia, Spain aut Pardo Francisca Department of Accounting, University of Valencia (Spain), Avenida dels Tarongers s/n, 46071, Valencia, Spain aut Journal of Business Ethics Springer Netherlands 132/1(2015-11-01), 21-40 0167-4544 132:1<21 2015 132 10551 https://doi.org/10.1007/s10551-014-2303-8 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s10551-014-2303-8 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Giner Begoña Department of Accounting, University of Valencia (Spain), Avenida dels Tarongers s/n, 46071, Valencia, Spain aut NATIONALLICENCE 700 1- Pardo Francisca Department of Accounting, University of Valencia (Spain), Avenida dels Tarongers s/n, 46071, Valencia, Spain aut NATIONALLICENCE 773 0- Journal of Business Ethics Springer Netherlands 132/1(2015-11-01), 21-40 0167-4544 132:1<21 2015 132 10551