A Study On The Correlation Between The Merger Goodwill And The Stock Price Of The Listing Companies

After the international financial crisis, the state support enterprises to become bigger and stronger. After the Eighteenth National Congress of the CPC, a series of policies is issued to promote mergers and acquisitions, which is aimed to achieve the integration of resources within the industry and the cross of industry expansion. At the same time, in order to gain their own development, enterprises take their initiativy, to open up the industry through mergers and acquisitions, and expand in the world.Under the influence of the two factors, the merger and reorganization events are booming, bringing a substantial increase in the amount of consolidated goodwill,In 2013,the number of Consolidated goodwill is ￥ 212.352 billion, while in 2015 is ￥642.775 billion,which is increased by nearly 3 times.The status and function of the consolidated goodwill in the enterprise become more and more important.This paper is based on Ohlson residual income valuation model. I selected listed companies in SME board and GEM as the research object.Also, I selects the financial data of listed companies in 2010 to 2014 as samples to carry the research.In the case of the relevant control variables, SPSS is used for multiple linear regression.The results show that the consolidated goodwill of SME board and GEM listed companies has a significant positive correlation with the company’s stock price.In other words, the greater consolidated goodwill is, the higher the share price will be.The concentrated goodwill of the listed companies that are different in ownership concentration shows different significance degree with the stock listed price.Compared to large shareholders holding small proportion of listing Corporation, large shareholders holding a large proportion of the listing Corporation with goodwill and corporate share price correlation is more obvious.Finally, according to the results of empirical research, this paper proposes several suggestions in terms of listed companies, investors, government agencies, asset evaluation agencies and the disclosure of goodwill.