Value relevance and reliability of goodwill and intangibles on financial statements: the case of Istanbul Stock Exchange

Ümit Gümrah, Burcu Adiloğlu
1.294 1.372


Failure in reflecting the impact of intangibles on financial statements on the current and future market value of the company leads an investor that financial statements are insufficient to present an unbiased (true and fair) view of the firm's financial position. In that context the aim of this study is to examine financial reporting reliability of goodwill and intangibles and value relevance of financial reports. To observe the effects of accounting variables on market value of equity Feltham and Ohlson Model (1995) is employed and panel data method is applied which handles both cross sections and time series. Results indicate that the abnormal operating earnings is the main market value driver whereas the coefficients of goodwill and intangibles imply that there is lack of reliability in financial reporting.


Value Relevance, Reliability, Goodwill, Intangibles, Panel Data Method

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