What question did this study set out to answer?

This research aims to examine how investors perceive positive goodwill as an asset in firm valuation.

April 3, 2026Open Access

The Empirical Evidence about Behaviors of Investor towards Purchased Goodwill in Japan

Puntos clave

This research aims to examine how investors perceive positive goodwill as an asset in firm valuation.
Analyzed market perceptions of goodwill as an asset in firm valuation.
Evaluated differences in market valuation of positive goodwill versus other assets.
Reviewed relevant accounting standards and guidelines.
Market views positive goodwill as a valuable asset for firm valuation.
Evidence for negative goodwill as a liability is weak.
Support for recognizing positive goodwill as an independent asset by accounting authorities.

Resumen

In this paper, we analyze the market perception of positive goodwill as an asset for determining valuation of the firm and we find that market perceives positive goodwill as an asset and useful information in the valuation of a firm.We also explore that market values positive goodwill differently from other assets.Whereas, the results of study show that evidence for reporting negative goodwill as a liability item is very weak.With these results of empirical tests, we agree with Financial Accounting Standards Board (F ASE) and Business Accounting Deliberation Council (BADC) about recogizing positive goodwill as an independent asset item; however we are suspicion of usefulness of negative goodwill when it is required by BADC to be reported as a biabilily on belance sheet.In the next section, we review related research, research issues, and then we describe research design and present the results for our examination.We offer some concluding remarks in the final section of the paper.

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