The Value Relevance of Goodwill and Goodwill Amortization : Evidence from Listed Japanese Companies

The results of this paper suggest that goodwill has a positive significant relationship with stock prices.And information of goodwill is more value relevant for non-manufacturing companies than for manufacturing companies.Moreover, the results indicate that earnings before amortization are more relevant than earnings after amortization.These findings suggest that goodwill amortization provides incremental information that is useful for assessing stock prices.