Factors explaining the impairment of goodwill in Spanish listed groups
Factores explicativos del deterioro del fondo de comercio en los grupos cotizados españoles
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Objective. To analyze which factors may influence the decision to recognize goodwill impairment losses when the net book value exceeds its recoverable amount.
Methodology. A multivariate logistic regression model was applied to a sample of listed companies, all of them dominating groups of companies presenting consolidated accounts in
Spain during the period 2014-2018. Results. The losses recorded by the entity, impairments booked in previous years, as well as size, are aspects that positively influence the recognition
of goodwill impairment. Conclusions. This work detects a certain discretionary behavior on
the part of managers due to the complexity involved in performing the goodwill impairment
test, in addition to its lack of precision.
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