Date of Award
2021
Document Type
Dissertation
Publication Status
Version of Record
Submission Date
October 2026
Thesis/Dissertation Advisor [Chair]
Kohlbeck, Mark
Abstract
The addition of Key Audit Matters (KAM) to standard audit reports is one of the most significant changes to the audit report in decades. However, research on the informativeness of KAMs to investors is mixed. I add to this literature by examining whether variation in how goodwill impairment KAMs (GIKAM) are determined influence their informativeness. I first develop a determinants model to predict when an audit client would receive a GIKAM and find that auditor quality (Big 4) and auditor independence (fee ratio) are negatively associated with the likelihood a client receives a GIKAM. I then use this model to create measures of unexpected GIKAMs to test the relationship between unexpected GIKAMs and market outcomes (price and volume). Using annual report date and three-day cumulative abnormal returns and abnormal trading volume, I find no relationship between unexpected GIKAMs and price or volume reactions. In my third hypothesis, I predict and find that GIKAMs are positively associated with goodwill impairment recognition using pooled and propensity score matched samples. These findings contribute to the growing literature on the usefulness of expanded audit reports as well as audit literature in general.
Extent
151 p.
Recommended Citation
Carlson, Tyler, "Determinants and Outcomes of Goodwill Impairment Key Audit Matters" (2021). Electronic Theses and Dissertations 2020 - Present. 695.
https://digitalcommons.fau.edu/etd_general/695
Identifier
FA00013819
Comments
Includes bibliography.|Dissertation (Ph.D.)--Florida Atlantic University, 2021.|FAU Electronic Theses and Dissertations Collection|Includes bibliography.