IDEAS home Printed from https://ideas.repec.org/a/ids/ijecac/v11y2022i1p42-72.html
   My bibliography  Save this article

Association between corporate social responsibility and goodwill impairment: evidence from the European Union

Author

Listed:
  • Alexander Nevrela

Abstract

I examine the association between corporate social responsibility (CSR) and goodwill impairment (GWI) in the European Union. A stream of literature indicates that CSR is associated with determinants of GWI. Prior literature has shown that each CSR component could generate individual effects. Therefore, I focus on disaggregating CSR into its main categories: environmental, social, and governance (ESG). I believe it is beneficial to provide evidence on the individual effects of ESG on GWI, as CSR affects multiple mergers and acquisitions (M%A) processes as well as the post-merger deal performance. Governance activities are in short-term associated with GWI, while social activities reveal a longer-term association (until t + 3). Furthermore, I investigate the association between ESG and the discretionary (unexpected) GWI losses. The results show that managers who engage in governance and environmental activities seem to act more ethically regarding earnings management behaviour.

Suggested Citation

  • Alexander Nevrela, 2022. "Association between corporate social responsibility and goodwill impairment: evidence from the European Union," International Journal of Economics and Accounting, Inderscience Enterprises Ltd, vol. 11(1), pages 42-72.
    • Handle: RePEc:ids:ijecac:v:11:y:2022:i:1:p:42-72
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=119612
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecac:v:11:y:2022:i:1:p:42-72. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=357 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.