Acta Univ. Agric. Silvic. Mendelianae Brun. 2020, 68(2), 373-381 | DOI: 10.11118/actaun202068020373

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

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.

Keywords: primary goodwill, secondary goodwill, intangible assets, sectors of intangible assets
Grants and funding:

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".

Received: December 31, 2019; Accepted: March 6, 2020; Published: April 29, 2020  Show citation

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Kedron, M. (2020). Goodwill and Its Effect on Share Price of Manufacturing and Nonmanufacturing Companies. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 68(2), 373-381. doi: 10.11118/actaun202068020373
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