2024 Assignment 2 (ACC30008): The analysis of Goodwill as a value driver when predicting the growth in share price DAVID CZEIZLER - 104961431 22 JANUARY 2024
TABLE OF CONTENTS 1 Executive Summary 2 Introduction & purpose 3 Discussion 4 Conclusion 5 References
1. Executive Summary This report delves in the significant role that 'Goodwill' has when in influencing the movement in a companies share price and if investors look to the movement of Goodwill as an element when thinking about investing in a company. Goodwill by definition is an intangible asset and can often be very difficult to value, however, plays a significant role in shaping an investor's perception and therefore impacting the overall value of a company. The primary purpose of this report is to analyse and conclude as to what degree goodwill influences a company's value and hence the overall perception to an investor. This report is tended to be read by decision makers, financial analysts and investors who are seeking an understanding of the correlation between the goodwill of a company and share price through the use of descriptive statistics and regression analysis. By exploring this connection the readers of this report and overall stakeholders can then make an more informed decision when making refined investment decisions and overall strategies in order to improve and maximise shareholder return. The research methodology that has been used has been based on the descriptive statistic and regression analysis of fifteen ASX listing companies. In addition the report scholarly articles have been reviewed to further understand the correlation between goodwill and share price. Overall both qualitative and quantitative methods were used to capture the mutifacted nature of the connection between goodwill and sharepirce.