< BACK TO INSIGHTS & IDEAS
Monday, June 15, 2009
GOODWILL IMPAIRMENT STUDY
“Two hundred fifty-six companies recorded GWI charges during 2008, which compares to 55 companies during 2007. Forty-seven companies wrote off their entire goodwill balance during 2008, which compares to six companies during 2007.”
The volume of companies recording goodwill impairment charges during 2008 was a record level, and the aggregate amount of impaired goodwill value was in excess of $220 billion. The primary purpose of Houlihan Lokey’s 2008 Goodwill Impairment Study is to assess the capital market’s reaction to goodwill impairment charges, as measured by absolute and relative stock price changes during the first trading day following the announcement of a U.S. company’s goodwill impairment charge. Further, the study attempts to determine whether stock price changes are influenced by the context in which goodwill impairment charges are communicated to the capital markets.
To download a one-page summary of the study’s key findings, click here.
To download your complimentary copy of the full study, please fill out the form here.