ASINE, Emmanuel Oseiwe
Department of Business Administration
Kaduna State University, Kaduna
MUHAMMAD, Rahilahtu Ahmad
Department of Business Administration
Kaduna State University, Kaduna
and
ANGO, Yusha’u Ibrahim
Department of Business Administration
Kaduna State University, Kaduna
ABSTRACT
The study examines the impact of goodwill on value relevance in oil and gas firms in Nigeria. The period of the study is 2012 to 2019 and the study employed secondary sources of data collection with adoption of correlation research design and multiple regression analysis. Data for the study were extracted from the published annual audited reports and accounts of selected firms and website of Nigerian Stock Exchange. The study employed goodwill as proxy for goodwill and market value as proxy for value relevance. Multiple regression models while multicollinearity and Hausman specification tests were carried out to test the validity of the statistical inference which further necessitated the use of random effects from the fixed effects model. The finding reveals goodwill per share is negatively and significantly impacting market value per share in listed oil and gas firms. The study therefore recommends that currently, international accounting standards (IAS 38) do not capture internally generated goodwill. Standard setters should ensure that these categories of intangible assets are captured in the revised IAS as these can influence firms’ share price.
Keywords: Intangible assets, Computer software, Intellectual properties, Market value, Value relevance.