Research On The Impact Of Managers’ Emotions On The Impairment Of Goodwill

From 2014 to 2016,the peak period of China’s corporate mergers and acquisitions,the continuous expansion of the scale of mergers and acquisitions has led to the year-on-year growth of goodwill of listed companies in China.In the past two years,many of the performance commitments at the beginning of mergers and acquisitions have not been fulfilled.The continued decline in performance has caused the acquirer’s revenue to fall short of expectations,and also caused listed companies to accrue a large amount of goodwill impairment losses.The accrual of goodwill impairment has attracted the attention of government regulators,academia,and investors,and has quickly become a hot spot in the market.The generation of corporate goodwill is closely related to the investment decisions of corporate managers.The process of impairment of goodwill also gives managers greater autonomy.The study found that there are many factors that influence managers’ decision-making,and managers’ emotions are one of the important factors.Different managers’ emotions will cause managers to have different perceptions of things,which will influence managers to make decisions.Different decisions will also have different effects on the impairment of goodwill.So how the manager’s mood affects the impairment of goodwill is the research direction of this article.Combining the irrational assumptions of behavioral finance,this paper defines the emotions of managers and describes the emotions of management from two perspectives:psychological and physiological characteristics.Through an introductory review of the literature,whether managers are overconfident is used to describe their psychological characteristics,and their age is used to describe their physiological characteristics.Taking the data of Shanghai and Shenzhen A-share listed companies from 2010 to 2018 as samples,we construct a logistic regression model and a multiple linear regression model to empirically study the influence of managerial sentiment on the impairment of goodwill of listed companies,and use the average salary as a substitute variable.Robustness test.This study finds that managers have the following conclusions under the premise of irrationality:managers’ overconfidence is directly proportional to the probability of goodwill impairment,that is,overconfident managers are more likely to cause goodwill impairment of the enterprise,while goodwill impairment The scale is also larger;there is a significant negative correlation between the age of managers and the probability of goodwill impairment,that is,the younger the manager is,the more prone to goodwill impairment is,and the scale of goodwill impairment is also Bigger.