The Effect Research About M&A Goodwill Of Listed Companies On Corporation Performance

After merger and acquisition(M&A) events,the goodwill disclosed by corporation in the consolidated financial statements is M&A goodwill,but in fact this is only the measurement method of M&A goodwill the nature of which are not required.This paper use the core competence theory of enterprise competence theory as the theoretical basis to discuss the relationship between essence of M&A goodwill with core competence and proposed the most fundamental reason that goodwill has been able to have a significant impact on firm performance is that the goodwill is external manifestation of the core competence in product markets. And The thesis establishes the mechanism of action of M&A goodwill on corporate performance in the mean while.The paper also proposes that only the portion from the core competence of M&A goodwill can provide a competitive advantage and contribute to corporation performance.Based on the non-financial insurance listed companies that disclose merger goodwill in consolidated balance sheet from 2010 to 2014, we make a empirical research on the relationship between M&A goodwill and corporation performance.First, this paper constructed the net profit model with M&A goodwill to analyze the role of merger goodwill to company's current and lag phase performance. Results show that for all listed companies that disclose M&A goodwill the improvement of performance is significant and constant,and the regression about the manufacturing enterprise has the same result;But as for the second industry enterprises, M&A goodwill can only significantly enhance corporate current performance; and the M&A goodwill has a significant positive contribution to the lag one profit in the third industry,the results suggest the improvement of performance is not sustained in the second and third industry.Secondly, this paper introduces the index of enterprise development ability, and build the model include the cross term of M&A goodwill and development capacity to analyze the role of development capacity in the contribution of merger goodwill toperformance. We found for all listed companies that disclosure merger goodwill, the stronger enterprise development ability, the effect of M&A goodwill on current performance will reduce instead. In addition, the results of the second industry, the third industry, manufacturing enterprises are not significant. This runs counter to the original idea with us, the reason may be that the enterprise development ability focus on the possibility of future development and emphasize its earnings potential rather than the current performance, and ultimately how well the future performance also depends on the development in the future.Finally we summarize the results of the empirical research about relevant conclusions and put forward brief limitations and suggestions.