Narrative disclosure quality and the timeliness of goodwill impairments

This paper studies the relation between quality of corporate narrative disclosure and timeliness goodwill impairments. We combine five measures linguistic content annual report narratives to generate a proxy for quality. To measure impairments, we deploy model that relates observed impairments main determinants identified by prior literature, focusing especially on current period negative stock returns. hypothesise find firms with low-quality disclosures are less timely than high-quality disclosures. In addition, using signalling argument, hypothesise, market response is more low