Acta Univ. Agric. Silvic. Mendelianae Brun. 2020, 68, 373-381
Published online 2020-04-29

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

Martin Kedron

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

Received December 31, 2019
Accepted March 6, 2020

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.


This research was supported by the Internal Grant Agency of Mendel University in Brno from the project “Intangible assets as sources and new possibilities for their recognition and disclosure”.


33 live references