Goodwill impairment, surplus management and company performance: Empirical evidence from Chinese a-shares

Xiaoqin Zhao, J. Tham, Qing Mu
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Abstract

In recent years, the capital market has generated huge amounts of goodwill assets as a result of blind mergers and acquisitions (M&A), and goodwill "thunderbolts" have become commonplace, with a significant impact on company operations and performance. To examine whether companies have used surplus management to improve the impact of goodwill impairment on company performance in the context of period-end profit losses and profit declines, this study selected a sample of non-financial listed Chinese A-share companies from 2007 - 2021 and used STATA15 to test the impact of goodwill impairment on company performance under the moderating effect of period-end profit loss and profit slip. The findings show that goodwill impairment has a significant and negative effect on company performance in the current year and the following year. However, management can use surplus management methods to significantly reduce the impact of goodwill impairment on company performance when the company experiences profit losses. The negative impact of goodwill on the company’s performance persists in the following year, regardless of whether the company experiences profit declines at the end of the period. The findings of the study validate the role of surplus management in companies with goodwill impairment under the new accounting standards and provide guidance on how to reduce the risks associated with goodwill impairment.
商誉减值、盈余管理与公司绩效:来自中国a股的实证证据
近年来,由于盲目并购,资本市场产生了巨额商誉资产,商誉“霹雳”现象屡见不鲜,对公司经营和业绩产生了重大影响。为了检验在期末利润亏损和利润下滑的背景下,企业是否利用盈余管理来改善商誉减值对公司业绩的影响,本研究选取2007 - 2021年中国a股非金融类上市公司样本,运用STATA15检验在期末利润亏损和利润下滑的调节作用下,商誉减值对公司业绩的影响。研究结果表明,商誉减值对公司当年和次年的业绩均有显著的负向影响。然而,当公司出现利润损失时,管理层可以利用盈余管理方法显著降低商誉减值对公司业绩的影响。商誉对公司业绩的负面影响在下一年度持续存在,无论公司在期末是否经历利润下降。研究结果验证了新会计准则下盈余管理在商誉减值公司中的作用,并为如何降低商誉减值相关风险提供了指导。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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