The effect of identifying intangible assets in an acquisition on investors’ judgments

dc.contributor.advisorKoonce, Lisa Lynn, 1959-
dc.contributor.committeeMemberBroniarczyk, Susan
dc.contributor.committeeMemberHirst, Eric
dc.contributor.committeeMemberJennings, Ross
dc.contributor.committeeMemberWhite, Brian J
dc.creatorLeitter, Zheng Jiang
dc.creator.orcid0000-0003-4694-9302
dc.date.accessioned2018-09-20T18:02:15Z
dc.date.available2018-09-20T18:02:15Z
dc.date.created2018-05
dc.date.issued2018-05
dc.date.submittedMay 2018
dc.date.updated2018-09-20T18:02:16Z
dc.description.abstractStandard setters struggle with the costs and benefits of requiring separate recognition of intangible assets in business combinations. Scholarly research on the consequences of separately identifying intangible assets versus subsuming intangibles into goodwill is limited. In this study, I experimentally test the effect of separately identifying intangibles on investors’ judgments about an acquisition, and whether this effect is moderated by providing a narrative disclosure that contains the strategic reasons for the acquisition. I predict and find that separately identifying intangibles enables investors to more easily envision how an acquiring company can benefit from an acquisition, increasing investors’ judgments about the valuation, future prospects, and investment desirability of the acquiring company. When intangibles are subsumed into goodwill, though, providing a strategic narrative acts as a substitute for intangible identification, with similar effects on investors’ judgments. Thus, my results show that providing investors with either the separate identification of what the companies acquire or the strategic reasons for the combinations can help investors better understand and foresee the favorableness of such business decisions. These results should be informative to standard setters, managers, and researchers.
dc.description.departmentAccounting
dc.format.mimetypeapplication/pdf
dc.identifierdoi:10.15781/T2KK94X68
dc.identifier.urihttp://hdl.handle.net/2152/68533
dc.language.isoen
dc.subjectGoodwill
dc.subjectIntangible assets
dc.subjectBusiness combinations
dc.subjectNarrative disclosure
dc.subjectStrategic goals and plans
dc.subjectSimulation heuristics
dc.subjectInvestor judgments
dc.titleThe effect of identifying intangible assets in an acquisition on investors’ judgments
dc.typeThesis
dc.type.materialtext
thesis.degree.departmentAccounting
thesis.degree.disciplineAccounting
thesis.degree.grantorThe University of Texas at Austin
thesis.degree.levelDoctoral
thesis.degree.nameDoctor of Philosophy

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