Goodwill impairment, economic policy uncertainty and CEO overconfidence
Goodwill impairment has sparked debate since its introduction over its discretionary nature. While previous studies have explored the factors affecting goodwill impairments, they mainly focused on firm-level determinants, often ignoring economy-wide factors. Our research fills this gap by examining...
Salvato in:
| Pubblicato in: | URI:https://journals.openedition.org/fcs, |
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| Autori principali: | , |
| Natura: | Article ou chapitre numérique |
| Lingua: | Anglais |
| Pubblicazione: |
Finance Contrôle Stratégie
2026
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| Soggetti: | |
| Accesso online: | Accès Université d'Orléans et IFPM Accès Université d'Orléans et IFPM |
| Riassunto: | Goodwill impairment has sparked debate since its introduction over its discretionary nature. While previous studies have explored the factors affecting goodwill impairments, they mainly focused on firm-level determinants, often ignoring economy-wide factors. Our research fills this gap by examining the relation between economic policy uncertainty (EPU) and goodwill impairment; while also analyzing the influence of CEO overconfidence, as overconfident executives tend to exhibit excessive optimism in uncertain scenarios. Using a sample of US listed firms from 2003 to 2020, we find that higher EPU leads to increased goodwill impairment. However, this effect is mitigated by overconfident CEOs, even when firms perform poorly and face prolonged EPU. |
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