The Information Value of Earnings Excluding Goodwill Amortisation in Publicly Listed New Zealand Companies

................................................................................................................... 5 Chapter 1 – Introduction......................................................................................... 6 Chapter 2 – Literature Review ............................................................................. 16 1. Value Relevance............................................................................................ 16 2. The Value Relevance of Earnings................................................................. 20 3. The Value Relevance of Intangibles ............................................................. 22 4. The Value Relevance of Goodwill and Goodwill Amortisation................... 26 Chapter 3 – Data and Methodology...................................................................... 36 1. Data .............................................................................................................. 36 2. Methodology................................................................................................. 37 Chapter 4 – Results ............................................................................................... 42 1. Descriptive Statistics.................................................................................... 42 2. The Information Value of Earnings Including and Earnings Excluding Goodwill Amortisation ...................................................................................... 44 3. The Information Value of Goodwill Amortisation ..................................... 49 Chapter 5 – Conclusions........................................................................................ 55 1. Key Findings and their Implications........................................................... 55 2. Limitations of the Study .............................................................................. 58 3. Suggestions for Further Research............................................................... 59 References.............................................................................................................. 61