Economic Thought and Practice, , 2026.
Original scientific paper
https://doi.org/10.17818/EMIP/2026/38
EFFECTS OF GOODWILL IMPAIRMENTS ON GROUPS’ FINANCIAL POSITION AND PERFORMANCE: THE CASE OF THE LARGE CROATIAN GROUPS
Ana Ježovita
; University of Zagreb, Faculty of Economics & Business, Department of Accounting, Croatia
*
Hrvoje Perčević
; University of Zagreb, Faculty of Economics & Business, Department of Accounting, Croatia
Boris Tušek
; University of Zagreb, Faculty of Economics & Business, Department of Accounting, Croatia
* Corresponding author.
Abstract
The objective of this study is to investigate whether goodwill impairments significantly affect the financial performance and financial position of large Croatian groups. The sample comprises 152 large Croatian groups and 1,405 observations from 2010 to 2021. All groups included in the sample prepared and disclosed consolidated annual financial statements in 2020. Three research questions are examined using exploratory panel data analysis. The results indicate that goodwill impairments have no statistically significant effect on profitability or changes in total assets. The findings also show that groups reporting goodwill do not have higher profitability ratios than groups without goodwill. Overall, the results suggest that goodwill impairments have no statistically significant effect on the financial position or performance of large Croatian groups.
Keywords
goodwill; acquisitions; goodwill impairments; profitability; return on assets
Hrčak ID:
351009
URI
Publication date:
14.9.2026.
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