Research On The Value-relevance Of Goodwill Impairment Accounting Information Of Listed Companies

With the continuous improvement of China’s capital market,M&A transactions between enterprises frequently occur,at same time M&A premium has formed a large number of goodwill.However,when the business performance of the M&A enterprise fails to meet expectations,the problem that large amount of goodwill is impaired began to stand out.In 2017,the total amount of goodwill impairment of A-share listed companies reached 36.339 billion,compare with the same time of last year increase252%.At the beginning of 2019,many listed companies broke the news that the huge amount of goodwill impairment caused losses,which made the issue of goodwill impairment become a hot topic in media discussion and the validity of goodwill impairment information was suspected.How does the impairment of goodwill affect the business development of listed companies,and how investors understand the signal of analyzing the impairment of goodwill.Therefore the accounting treatment of goodwill impairment test and goodwill impairment has become the focus of market attention again.Under the background that the goodwill impairment information is highly concerned,this thesis takes the company with the goodwill value of the financial statements of listed companies in the Shanghai and Shenzhen stock markets in2013-2017 as the main sample,then conducts the existing literature and basic theories at home and abroad.At last,through the price model and income model in the Ohslon model analysizing the value correlation of the impairment loss of goodwill,the difference between the value of the impairment loss of the profitable company and the loss-making company,and the impairment of the accumulated goodwill Value-related issues,as well as the issues related to the value of goodwill amortization.The research found that:(1)The impairment loss of goodwill recognized by China’s A-share listed companies in the current period has value correlation.The confirmation of impairment loss of goodwill represents the decline of the future excess profitability of the enterprise,and the provision of impairment loss of goodwill.Will lead to lowerstock prices and stock returns.(2)The value correlation of the profit loss of the profitable company is stronger than that of the loss-making company.When a loss-making company conducts a goodwill impairment test,it will be affected by the management’s earnings management factors,which will weaken the value relevance of goodwill impairment information.(3)The value correlation of accumulated goodwill impairment provision is weaker than the value correlation of goodwill impairment loss.The provision for impairment of goodwill of listed companies is not allowed to be reversed.In the future,the operating status of listed companies will turn good,and the accumulated impairment of goodwill still exists,which reduces the value correlation of accumulated goodwill impairment provision.(4)The amortization of goodwill recognized under the straight-line amortization method is value-related.Both the impairment of goodwill and the amortization of goodwill recognized by the impairment test method and the amortization method have certain economic meaning and value,but both methods have inherent defects and weaken the quality of accounting information.Though the above research conclusions,it can be seen that the goodwill impairment information has value relevance.At present,the impairment test of goodwill and the accounting treatment of goodwill impairment are effective in China,but the system of impairment of goodwill is not perfect.The method of impairment test of goodwill has artificial manipulation space,and it is necessary to further refine accounting standards.The provisions and improve the goodwill impairment test method.This thesis analyzes the value relevance of goodwill impairment from different angles,making the research conclusion more comprehensive.Finally,based on the research results,this thesis puts forward relevant suggestions from three aspects:government agencies,investors and enterprises.At same time writer also put forward the shortcomings of this thesis and future research prospects.