An Examination of the Voluntary Recognition of Acquired Brand Names in the United Kingdom

Posted: 8 Apr 1998

See all articles by Karl A. Muller

Karl A. Muller

Pennsylvania State University - Department of Accounting

Date Written: January 1998

Abstract

This study examines U.K. companies? motives for capitalizing brand name estimates and the proprietary nature of brand name estimates. Results indicate that companies? decisions to capitalize acquired brand names was influenced by the impact that the immediate write-off of goodwill to equity would have had on the London Stock Exchange?s mandatory shareholder approval requirement for future transactions. In addition, results indicate that brand estimates are valued by the market as representing fair values, and that brand names exhibit a differential association with market values than goodwill, suggesting that the disclosure of brand estimates reveals proprietary information to potential competitors.

JEL Classification: M41, M44

Suggested Citation

Muller, Karl A., An Examination of the Voluntary Recognition of Acquired Brand Names in the United Kingdom (January 1998). Available at SSRN: https://ssrn.com/abstract=74548

Karl A. Muller (Contact Author)

Pennsylvania State University - Department of Accounting ( email )

Smeal College of Business
384 Business Building
University Park, PA 16802-3306
United States
814-865-0202 (Phone)
814-863-8393 (Fax)

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