The Correlation Study Of Financial Performance And Goodwill Of The Listed Companies

Since the implementation of the current accounting standards in 2007,the listed companies in china have disclosed huge goodwill annually in accounting statements.And the disclosed amount has been increasing rapidly every year.Besides,there is expected to be a continued growth trend in the future.According to statistics,by the end of December 31 st,2015,the disclosed goodwill amount in financial statements of listed companies accounted for more than 30% of the total amount of assets..With continued development of China's mergers and acquisitions,the proportion of goodwill amount in the total assets in accounting statements of listed companies shows a gradually increasing trend.For enterprises,the cost and potential value of goodwill may have a significant impact on the financial performance of enterprises.For stakeholders,goodwill is an indicator to transfer relevant information as an asset in accounting statements.Therefore,the relationship between goodwill and financial performance should be emphasized both for the company itself and for stakeholders.On the basis of domestic and foreign scholars theoretical researches combined with the information disclosure status quo analysis of goodwill and financial performance of the listed company,this paper takes the main board companies wih the disclosure of goodwill in holding merger under different control from 2007 to 2015 as the research sample.Considering the hysteresis of the synergy effect of goodwill,the financial performance of the current period,one period lag,two periods lag and three periods lag are selected as explained variables.In this paper,we study the correlation between goodwill and financial performance of listed companies by empirical analysis from the following four aspects: the relationship between goodwill and financial performance,the relationship between goodwill and financial performance under the circumstances of market concentration,the influence path of goodwill on financial performance and the influence path of goodwill on financial performance under the circumstances of market concentration.This helps to understand the essence of the disclosure of goodwill of listed companies,which can help the enterprises to realize the impact consequences of goodwill they owned as well as to develop more effective acquisition plans or the discretion and evaluation of goodwill in the future.The results of empirical study show that,if the market concentration is not considered,the higher goodwill of listed companies can improve current financial performance while reduce the financial performance of the next two periods.The negative impact of goodwill on financial performance has a time lag.In industries with high market concentration,higher goodwill is helpful to improve both current financial performance and financial performance of the future two periods.And the effect of goodwill on financial performance is not persistent.The specific performances are as follows: The higher goodwill of a listed company raises the current financial performance mainly through raising the net interest rate.At the same time,the higher goodwill of a listed company reduces the financial performance of one period lag and two periods lag mainly through reducing the total asset turnover rate.While there does not exist correlation between goodwill and the financial performance of three periods lag.In the industry with higher market concentration degree,the higher goodwill of listed companies is more helpful to improve the financial performance of the current period mainly through improving the sales net interest rate.Also,the higher goodwill of listed companies improves the financial performance of one period lag and two periods lag mainly through improving the total asset turnover rate.And there exists a no significant positive correlation between goodwill and financial performance of three periods lag.In addition,the financial performance of listed companies is also affected by the company's growth,company size,asset liability ratio,equity concentration and the proportion of state-owned holding.At last,this paper puts forward relevant suggestions from three aspects of the listed company merger and acquisition,value evaluation and goodwill information disclosure.