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; 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; Dind_GBP (Dind_GBPold) is an indicator variable set to one if the firm discloses (disclosed) a supporting reason in the period of recognising GBP (GBPold) and zero otherwise; GBP is the gain on bargain purchase per share recognised during the current period; GBPold is the total gains on bargain purchase per share recognised in earnings over the preceding two periods; Neg is an indicator variable set to one if NI is negative and zero otherwise. 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