Goodwill Estimation and Value Relevance of Accounting Information
This study investigated Intangible asset and value relevance of accounting information. The broad objective of this study is to examine the effect of intangible assets on the value relevance of accounting information. The study adopted cross sectional time series data from 2012-2019 across eight (8) manufacturing firms. The secondary data gathered were analyzed using multiple regression analysis. The research also employed hausman test to select between fixed effect and random effect. The result based on hypothesis one shows that there is a negative relationship between goodwill recognition and value relevance of accounting information and therefore the goodwill recognition does not increase the value relevance of accounting information. The result based on hypothesis two shows that there is a negative relationship between goodwill amortization and value relevance of accounting information and goodwill amortization has an insignificant effect on value relevance of accounting information, therefore goodwill amortization does not increase the value relevance of accounting information. The result based on hypothesis three shows that there is a positive relationship between impairment of goodwill and value relevance of accounting information and impairment of goodwill has an insignificant effect on value relevance of accounting information, therefore the impairment of goodwill increases the value relevance of accounting information but not significantly. In conclusion this study suggested that the announcement of accounting information in financial reports can either increase or decrease share prices thereby increasing the value relevance of accounting information. It was recommended that the firms should place too much emphasis on information regarding goodwill…