An Econometric Analysis of Goodwill: Some Findings in a Search for Valuation Rules.
The article discusses some research work on the econometric analysis of goodwill. In, 1884 William Harris delivered a paper, "The Law and Practice in Relation to Goodwill," to the Manchester Accountants' Students' Society. This occasion marked what is probably the first discussion of the subject in accounting literature. The paper focused mainly on the valuation of goodwill for purposes other than income determination although it did mention the problem of amortizing goodwill. The purpose of this article is to attempt to estimate the range for some of these variables to reconcile theoretical valuations with market transactions in a specific class of purchase transactions. The article discusses the class of purchase transactions examined in this study and the data available from those transactions. Of all the various classes of enterprise, market goodwill valuations for liquor stores should be among the easiest to reconcile with theoretical valuations. These businesses are "simple," homogeneous and enjoy State-enforced monopoly and retail price maintenance.
- DOI
- 10.2308/tar-4491954
- Volume
- 44 (1)
- Pages
- 20-26
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref