Effect of human resource investments in internal controls on goodwill impairment

IF 2.1 Q2 BUSINESS, FINANCE
Eun Hye Jo, Jung Wha Lee
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引用次数: 0

Abstract

Purpose

This study aims to investigate the impact of human resource investment in internal controls (hereinafter, IC personnel) on managers’ goodwill impairment decisions.

Design/methodology/approach

The authors use the ratio of IC personnel to the number of employees in the firm and the average work experience of IC personnel as quantitative and qualitative measures for IC personnel, respectively.

Findings

The authors find that the relationship between the likelihood of impairment and the expected impairment is not associated with the ratio of IC personnel. However, the average experience of IC personnel increases the likelihood that a company will record an impairment when there are market and financial indicators of impairment. The findings suggest that the effectiveness of IC is determined by practical proficiency rather than size. Furthermore, our analyses demonstrate that the greater the experience of the IC personnel in the accounting/finance or IT departments, the more likely the manager will record an expected impairment. Overall, our findings emphasize the importance of IC personnel expertise to enhance the effectiveness of IC for financial reporting.

Originality/value

Using unique data available only in Korea, to the best of the authors’ knowledge, this is the first study to show the effect of human resource investment in IC on goodwill impairment.

内部控制中人力资源投资对商誉减值的影响
目的本研究旨在探讨内部控制人力资源投入(以下简称内控人员)对管理者商誉减值决策的影响。设计/方法/方法作者分别使用集成电路人员与公司员工人数的比例和集成电路人员的平均工作经验作为集成电路人员的定量和定性措施。研究结果作者发现,减值可能性和预期减值之间的关系与IC人员的比例无关。然而,当市场和财务指标出现减值时,集成电路人员的平均经验增加了公司记录减值的可能性。研究结果表明,集成电路的有效性是由实际熟练程度而不是大小决定的。此外,我们的分析表明,IC人员在会计/财务或IT部门的经验越丰富,经理越有可能记录预期减值。总体而言,我们的研究结果强调了集成电路人员专业知识对提高集成电路财务报告有效性的重要性。原创性/价值据作者所知,本文使用了仅在韩国可获得的独特数据,首次展示了IC中人力资源投资对商誉减值的影响。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Pacific Accounting Review
Pacific Accounting Review BUSINESS, FINANCE-
CiteScore
3.80
自引率
9.50%
发文量
36
期刊介绍: Pacific Accounting Review is a quarterly journal publishing original research papers and book reviews. The journal is supported by all New Zealand Universities and has the backing of academics from many universities in the Pacific region. The journal publishes papers from both empirical and theoretical forms of research into current developments in accounting and finance and provides insight into how present practice is shaped and formed. Specific areas include but are not limited to: - Emerging Markets and Economies - Political/Social contexts - Financial Reporting - Auditing and Governance - Management Accounting.
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