This appendix summarises the definitions for the various variables used in this study
| BV | Book value per share, excluding all gains on bargain purchase variables |
| GBP_Disc | The gain on bargain purchase per share recognised during the current period where the firm discloses a supporting reason for its recognition |
| GBP_NoDisc | The gain on bargain purchase per share recognised during the current period where the firm does not disclose a supporting reason for its recognition |
| GBPmat | 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 |
| GBPold_Disc | The total gains on bargain purchase per share recognised in earnings over the preceding two periods where the firm disclosed supporting reasons in the period of their first recognition |
| GBPold_NoDisc | The total gains on bargain purchase per share recognised in earnings over the preceding two periods where the firm did not disclose supporting reasons in the period of their first recognition |
| Impair | An indicator variable set to one if a firm has reported impairment of goodwill during the current or two preceding years and zero otherwise |
| LEV | Gearing, calculated as unadjusted book value over total assets |
| MV | Market value per share, six months after the reporting date, calculated using a firm-specific total return index |
| Neg | An indicator variable set to one if NI is negative and zero otherwise |
| NI | Earnings attributable to ordinary shareholders per share, excluding GBP_Disc and GBP_NoDisc |
| ROA | Return on assets |
| Size | The natural log of total assets |
| Book value per share, excluding all gains on bargain purchase variables | |
| The gain on bargain purchase per share recognised during the current period where the firm discloses a supporting reason for its recognition | |
| The gain on bargain purchase per share recognised during the current period where the firm does not disclose a supporting reason for its recognition | |
| 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 | |
| The total gains on bargain purchase per share recognised in earnings over the preceding two periods where the firm disclosed supporting reasons in the period of their first recognition | |
| The total gains on bargain purchase per share recognised in earnings over the preceding two periods where the firm did not disclose supporting reasons in the period of their first recognition | |
| An indicator variable set to one if a firm has reported impairment of goodwill during the current or two preceding years and zero otherwise | |
| Gearing, calculated as unadjusted book value over total assets | |
| Market value per share, six months after the reporting date, calculated using a firm-specific total return index | |
| An indicator variable set to one if | |
| Earnings attributable to ordinary shareholders per share, excluding | |
| Return on assets | |
| The natural log of total assets |
Source(s): Author's own work
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