In a context of external growth in constant emergence and in the midst of globalization, mergers and acquisitions are multiplying. As a result, goodwill has taken considerable weight in the groups' balance sheets. As a matter of fact, the concept of goodwill has been for over a decade a subject of debates and discussions trying to define the concept and discuss its treatment in accounting and finance. Beginning with an overview to shed light on the literature review related to goodwill, its accounting treatment and performance measurement, this article will be an attempt to determine the link between the value of goodwill from an accounting point of view and performance measurement based on the results of previous studies. In fact, our study will focus mainly on the M&A initiated in US between 2014 and 2016. Given these points, through our analysis we conclude a positive and strong relationship between goodwill and Residual Economic Income.
JEL classification numbers: G32, O34, G34, O32, H11, M41
Keywords: Goodwill, performance, value creation, super profit, goodwill accounting, acquisition.