Determinants of Goodwill Impairment in Russian and Foreign Practice

This study aims to reveal the main determinants of goodwill impairment in Russian and Foreign practice and to assess the impact of these factors on goodwill write-offs. In order to get to the results, there were eight logit-regression models which includes binary variable equal 1, if goodwill was write-off and 0, if goodwill wasn’t write-off from the company's balance sheet in the year under review. At the same time, we used the factors that could demonstrate the influence of discretionary powers of management, of external monitoring of the activities of firms, of economic conditions, of economic indicators as independent variables. Since we assumed that the influence of determinants is different in Russia and abroad, we evaluated models for Russian and foreign companies separately. The main result of this research is that goodwill impairment could indeed be affected by discretionary powers of management, of external monitoring of the activities of firms, of economic conditions, of economic indicators, besides the influence of factors was different in Russia and abroad.