@inproceedings{4b1e7c44c94840f1bdbf673100231fd6,
title = "The effect of executive compensation toward goodwill recognition",
abstract = "This study aims to examine the impact of earnings-based and equity-based components of executive compensation on purchase price allocation to goodwill after successful acquisitions. This study employs listed companies' financial data from 2011 to 2016, collected from five ASEAN countries which already adopted IFRS 3 (2004): Business Combinations as standards for M&A transactions and the acquisition premium (goodwill). The results show that bonus as the earnings-based compensation has a significant impact but negatively associated with goodwill recognition, indicating the executives from acquiring companies are not tend to use their discretion for making goodwill overstatement in order to gain more bonuses. Meanwhile, share option as the equity-based compensation is rather weak to mitigate executives' incentive in making goodwill overstatement, due to only small numbers of ASEAN corporations included share option in the compensation package.",
keywords = "Executive compensation, Goodwill recognition, IFRS 3",
author = "Fertika Yulia and Mita, {Aria Farah}",
note = "Publisher Copyright: Copyright {\textcopyright} 2018 International Business Information Management Association (IBIMA).; 32nd International Business Information Management Association Conference, IBIMA 2018 ; Conference date: 15-11-2018 Through 16-11-2018",
year = "2018",
language = "English",
series = "Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth",
publisher = "International Business Information Management Association, IBIMA",
pages = "5026--5034",
editor = "Soliman, {Khalid S.}",
booktitle = "Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020",
}