摘要：The authors examine abnormal stock returns for firms that take goodwill impairmentwrite-downs post 2002 when the accounting rules changed. Existing literature finds positivecumulative abnormal returns (CARs) for both six months and one-year post event. We add to theliterature by testing if investors perceive that the relative size of the event is important and findthat the larger the relative impairment size, the greater the abnormal return post-event. Wefurther examine if this reaction is different based on the status of the market and find thatabnormal returns are much greater post-event when the market is generally negative.
