Goodwill and Financial Performance: A Case Study of BHP Billiton

Desklib provides past papers and solved assignments. This report analyzes BHP Billiton's financial performance in relation to goodwill.

IMPACT OF ORGANIZATION'S GOODWILL
ON FINANCIAL PERFORMANCE OF A
COMPANY: A CASE OF BHP BILLITON

IMPORTANCE OF RESEARCH
• Goodwill is the value in the financial statement of the company that characterises the value
gained by the organisation while acquiring other business entities.
• Many researchers have argued that it might or might not impact the net profitability while some
have supported the statement that it always increases the net profitability.
• This research would help in understanding the goodwill of the company and its likely impact
on the profitability of the company. As a scholar of management, this research would assist in
increasing the knowledge of the factors affecting the profitability of the company
• The independent variable is organisation’s goodwill and dependent variable is net profits.

GENERAL UNDERSTANDING OF RESEARCH
• The research is aiming at analyzing the likely impacts of organization’s goodwill on the
financial performance of the company.
• The overall research objectives would be focusing on getting insight for the goodwill and
factors affecting financial performance of the company
• The relationship between the two variables will be established by making use of the secondary
data
• Final suggestions for the BHP Billiton would be provided.

SOURCE FOR RAW SECONDARY DATA
The past 15 years financial statement will be taken from
BHP Billiton’s annual report available on the website of
the company.
The link is provided below:-
https://www.bhp.com/-/media/bhp/documents/investors/re
ports/2004/bhpb_ltd_full_04.pdf?la=en

Does Organisation’s
goodwill impact the
net profits earned
by a company?
Is goodwill
and net
profits
interrelated
?
Is there any
other
interrelationsh
ip between
goodwill and
net profits?
RESEARCH QUESTION

SEARCHED TERMS
• Influence of Goodwill on net profits
• Interrelation between organization’s goodwill and net profits
• Impact of goodwill on financial performance
• Linkage between Goodwill and net profits

REFERENCES FOR LITERATURE REVIEW
1. PATRICIA NUNES CAVALINHOS. (2015). THE IMPACT OF THE
GOODWILL IN PROFIT. REVISTA UNIVERSO CONTABIL, 11(2), 196-210.
2. HARIT SATT, & YOUSSEF CHETIOUI. (2017). DOES GOODWILL
IMPROVE FIRM PERFORMANCE? EVIDENCE FROM THE MENA
REGION. RISK GOVERNANCE & CONTROL: FINANCIAL MARKETS &
INSTITUTIONS, 7(2), 108-115.
3. ZHANG, M. (2013). THE IMPACT OF INTERNALLY GENERATED
GOODWILL ON FINANCIAL PERFORMANCE OF FIRMS. THE
JOURNAL OF APPLIED BUSINESS RESEARCH, 29(6), 1809-1814.
These research articles would serve
as a basis for the research project.
These would help in getting an
understanding of the topic and
establishing the interrelationship
between goodwill and financial
performance of the company.