Tech Stock Valuation

goodwill write-off decisions provide evidence that such accounting adjustments

reflect the loss of important intangible assets (see Hirschey and Richardson, 2002).

IV. SAMPLE

This study of goodwill write-off decisions focuses on discretionary announce-

ments taken by companies during the 1992–96 five-year period. This time frame

allows consideration of event-period returns that are unaffected by discussions

surrounding recent accounting changes and consideration of stock market returns

during long-window preannouncement and postannouncement periods. Event

dates for goodwill write-off announcements are identified from The Wall Street

Journal Index online ...