Note(s): The dependent variable is MV for all the regressions. MV is market value per share, six months after reporting date, calculated using a firm-specific total return index; BV is book value per share, excluding all gains on bargain purchase variables; NI is earnings attributable to ordinary shareholders per share, excluding GBP_Disc and GBP_NoDisc; Impair is an indicator variable set to one if a firm has reported impairment of goodwill during the current or two preceding years and zero otherwise; GBP_Disc (GBP_NoDisc) is the gain on bargain purchase per share recognised during the current period where the firm discloses (does not disclose) a supporting reason for its recognition; GBPold_Disc (GBPold_NoDisc) is the total gains on bargain purchase per share recognised in earnings over the preceding two periods where the firm disclosed (did not disclose) supporting reasons in the period of their first recognition; Neg is an indicator variable set to one if NI is negative and zero otherwise; Size is the natural log of total assets; ROA is return on assets; LEV is gearing, calculated as unadjusted book value over total assets; GBPmat is materiality of gains on bargain purchase, calculated as the sum of all gains on bargain purchase reported in the current and preceding two periods over unadjusted net income. p-values from two-tailed tests are indicated in brackets. *, ** and *** denote significance at the 10, 5 and 1% levels respectively. Significance is determined based on robust standard errors clustered in three dimensions, namely firm, year and industry (Cameron et al., 2011). An adjustment is made where the variance–covariance matrix is not positive-semidefinite

Source(s): Author's own work