The Goodwill Of The Enterprise Value Relevance Research

With the constant development of global economy environment, China’s industrial upgrading is accelerated, the increasingly intense competition in the market, at the same time, China’s 12th five-year plan clearly put forward to adjust the economic growth mode, accelerate transformation of the mode of economic development, reform and adjustment of the existing unreasonable economic structure. Change the way of economic development, will make the enterprise merger and acquisition activity increased dramatically, and at the same time will produce a lot of merger goodwill. In knowledge economy dominated by the modern society, goodwill has become the main factor of enterprise core competitiveness, but also become the key factors determine the success or failure of the market competition, the value of the goodwill and its growing importance. So the question of goodwill is more attention by scholars and enterprise managers.This paper takes the core goodwill is based on the measurement and analysis of the essence, the core elements of goodwill. Discovery of goodwill as an asset of an enterprise, the theory can bring economic benefits for enterprises. But restricted by the measurement method, confirm the accounting Goodwill valuation error, measurement error of doping and other factors, therefore, it is necessary to test the value relevance of goodwill. According to the "structure conduct performance model", the market structure decides the enterprise in the market behavior, and the behavior of enterprises and decision in all aspects of the market operation and economic performance. Therefore, in the value relevance degree of the enterprises in the industry of goodwill from different markets may be differences. Because of the particularity of China’s economic and political system, the nature of equity enterprises represented by the "political relations" has an important influence on the allocation of social resources. Therefore, the value relevance of property rights of enterprises may affect the goodwill.So based on the related theory of goodwill, about goodwill value relevance of empirical research results at home and abroad on the basis of systematic review, summarize and evaluate, put forward in this paper, assumptions, and choice of 2007-2012 A-share listed companies listed in Shanghai and Shenzhen two city as the research object, using empirical research method, in order to study the rich theory of goodwill, help guide the construction of enterprise core competitiveness. Empirical research yielded the following conclusion:first, the goodwill of listed companies has value relevance, goodwill value was significantly positive correlation with the company. The earnings of listed companies in the merger of goodwill to reveal information provides information related to m&a events, signal transmission functions, which affects a large number of external users of financial statements investment decisions, eventually improve enterprise value. Secondly, from the market concentration degree angle, found a high degree of market concentration of industries, goodwill has more value relevance. The high market concentration of industries, has scale effect. Listing Corporation can through the vertical merger, horizontal merger and diversification merger, form the monopoly position. Finally, from the perspective of enterprise nature, found that compared with the state-owned listed companies and private listed company reputation has more value relevance. The state-owned enterprise merger and acquisition to both economic and political purposes, mergers and acquisitions need spending is usually a secondary factor, while the private enterprises follow the principle of cost effectiveness. Finally, based on the empirical research results puts forward policy Suggestions to improve the value of the goodwill correlation.