File Download
There are no files associated with this item.
Supplementary
-
Citations:
- Appears in Collections:
Conference Paper: The Invisible Burden: Goodwill and the Cross-Section of Stock Returns
Title | The Invisible Burden: Goodwill and the Cross-Section of Stock Returns |
---|---|
Authors | |
Issue Date | 2019 |
Publisher | Financial Management Association International. |
Citation | 2019 Financial Management Association European Conference, Glasgow,Scotland, UK, 12-14 June 2019 How to Cite? |
Abstract | We study the role of goodwill, a form of intangible assets arising from past mergers and acquisitions, on asset pricing. We find that goodwill-to-sales strongly and negatively predicts the cross-section of stocks returns, especially among firms with cross-industry M&A histories and firms with overconfident CEOs. It remains as an economically and statistically significant predictor of stock returns after adjusted by all known factors. Our results suggest that high goodwill-to-sales subsumes negative information on future firm value, and stock markets underreact to this information because the fair value of goodwill is unobservable and hard to evaluate. |
Description | Session 90 - Determinants of Stock Returns |
Persistent Identifier | http://hdl.handle.net/10722/278792 |
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Liu, X | - |
dc.contributor.author | Yin, C | - |
dc.contributor.author | Zheng, W | - |
dc.date.accessioned | 2019-10-21T02:14:08Z | - |
dc.date.available | 2019-10-21T02:14:08Z | - |
dc.date.issued | 2019 | - |
dc.identifier.citation | 2019 Financial Management Association European Conference, Glasgow,Scotland, UK, 12-14 June 2019 | - |
dc.identifier.uri | http://hdl.handle.net/10722/278792 | - |
dc.description | Session 90 - Determinants of Stock Returns | - |
dc.description.abstract | We study the role of goodwill, a form of intangible assets arising from past mergers and acquisitions, on asset pricing. We find that goodwill-to-sales strongly and negatively predicts the cross-section of stocks returns, especially among firms with cross-industry M&A histories and firms with overconfident CEOs. It remains as an economically and statistically significant predictor of stock returns after adjusted by all known factors. Our results suggest that high goodwill-to-sales subsumes negative information on future firm value, and stock markets underreact to this information because the fair value of goodwill is unobservable and hard to evaluate. | - |
dc.language | eng | - |
dc.publisher | Financial Management Association International. | - |
dc.relation.ispartof | 2019 Financial Management Association European Conference | - |
dc.title | The Invisible Burden: Goodwill and the Cross-Section of Stock Returns | - |
dc.type | Conference_Paper | - |
dc.identifier.hkuros | 307559 | - |