<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Background and purpose:</bold> Knowing key indicators of goodwill value can contribute to its effective management and growth of the market value of the enterprise. The purpose of this research is to identify individual goodwill indicators. The paper aim is to obtain potential indicators of enterprise goodwill under the conditions of the Slovak Republic.<bold>Design/Methodology/Approach:</bold> Paper data included 11,483 financial statements of Slovak enterprises in 2017. The value of residual enterprise income represents the value of goodwill. Input data for the identification of goodwill indicators represented 15 financial-economic variables. Outliers in data were searched and removed through an interquartile range. Multicollinearity among input variables, by the coefficient of determination and variance inflation factor, was also analysed. A statistically significant correlation between goodwill and its potential indicator were tested by the significance test of the Pearson correlation coefficient and correlation matrixes.<bold>Results:</bold> Research results reveal the existence of a statistically significant correlation between goodwill and 8 input variables, which represent its potential vital indicators.<bold>Conclusion:</bold> Paper findings bring new possibilities for goodwill management, which may create an essential competitive advantage of a company. For the scientific community, the findings represent sources of potential goodwill indicators which can be used for the creation of the new model of goodwill valuation in future research.</abstract>

Background and purpose: Knowing key indicators of goodwill value can contribute to its effective management and growth of the market value of the enterprise. The purpose of this research is to identify individual goodwill indicators. The paper aim is to obtain potential indicators of enterprise goodwill under the conditions of the Slovak Republic.Design/Methodology/Approach: Paper data included 11,483 financial statements of Slovak enterprises in 2017. The value of residual enterprise income represents the value of goodwill. Input data for the identification of goodwill indicators represented 15 financial-economic variables. Outliers in data were searched and removed through an interquartile range. Multicollinearity among input variables, by the coefficient of determination and variance inflation factor, was also analysed. A statistically significant correlation between goodwill and its potential indicator were tested by the significance test of the Pearson correlation coefficient and correlation matrixes.Results: Research results reveal the existence of a statistically significant correlation between goodwill and 8 input variables, which represent its potential vital indicators.Conclusion: Paper findings bring new possibilities for goodwill management, which may create an essential competitive advantage of a company. For the scientific community, the findings represent sources of potential goodwill indicators which can be used for the creation of the new model of goodwill valuation in future research.

Analysis of Internally Generated Goodwill Indicators: A Case Study of the Slovak Republic

The Faculty of Operation and Economics of Transport and Communications, Department of Economics

Organizacija

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Background and purpose: Knowing key indicators of goodwill value can contribute to its effective management and growth of the market value of the enterprise....

Analysis of Internally Generated Goodwill Indicators: A Case Study of the Slovak Republic

Online veröffentlicht: 31. Dez. 2019

Seitenbereich: 271 - 285

Eingereicht: 07. Juli 2019

Akzeptiert: 15. Nov. 2019

DOI: https://doi.org/10.2478/orga-2019-0017

Schlüsselwörter
Goodwill, Residual income, Key indicators, Correlation

© 2019 Ivana Podhorska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Analysis of Internally Generated Goodwill Indicators: A Case Study of the Slovak Republic

Online veröffentlicht: 31. Dez. 2019

Seitenbereich: 271 - 285

Eingereicht: 07. Juli 2019

Akzeptiert: 15. Nov. 2019

DOI: https://doi.org/10.2478/orga-2019-0017

SchlüsselwörterGoodwill, Residual income, Key indicators, Correlation

© 2019 Ivana Podhorska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Schlüsselwörter
Goodwill, Residual income, Key indicators, Correlation