The Impact Of Goodwill On Stock Price Collapse Risk In Second-board Market

Under the background of the rapid development of the capital market,mergers and acquisitions between companies have become increasingly frequent.Broadening M&A financing channels and enriching M&A payment methods have become one of the priorities of the central economic work.The high-frequency and value M&A have led to the rapid increase of the asset scale of goodwill.The hidden possibility of impairment in the huge goodwill has brought great challenges to the smooth operation of the capital market.In the fourth quarter of 2017,impairment triggered many events of stock price crash in the Second-board market.Based on above,this paper takes the 2010-2017 Second-board market listed companies as a sample and uses regression analysis to test the impact of the size of goodwill assets on the company's share price collapse risk.This paper found that:First,there is a significant positive correlation between the size of goodwill assets and the risk of stock price collapse.The larger the size of goodwill assets,the higher the risk of the stock price collapse.Second,from the perspective of the company itself,the listed company's own stock price bubble level and information transparency have an impact on the positive correlation between the size of goodwill assets and the risk of stock price collapse.The high stock price bubble and low information transparency will aggravate the positive correlation between the size of goodwill assets and the risk of stock price collapse.Third,from the perspective of the external environment,the performance commitment period has an impact on the positive correlation between the size of goodwill assets and the risk of stock price collapse,that is,after the performance commitment period,the positive correlation between the goodwill asset size and the stock price collapse risk is more significant.Further research found that the nature of corporate property rights has an impact on the positive correlation between the two.Compared with private companies,the size of goodwill assets has a stronger impact on the stock price collapse risk.This has led to revelation in order to reduce the adverse effects of goodwill on the smooth running of stock prices.On the one hand,it is necessary to strengthen the investor's risk awareness,help them establish a correct risk-reward awareness,and cultivate a correct risk response concept.On the other hand,the tracking management after the performance commitment period should be improved.Beware of the management's manipulation of the stock price after the performance commitment period,because there is no longer a reputational damage problem.The main innovations of this paper are as follows:First,the research on the economic consequences of the stock price bubble is mostly carried out from a macro perspective.This paper uses the stock price bubble as a regulatory variable to verify its impact on the relationship between goodwill and stock price collapse risk.It is a supplement to the study of the economic consequences of the stock price bubble.Second,there are few research results on the economic consequences of performance commitments.Therefore,this paper will be in the performance commitment period as a moderator,verify its impact on the relationship between goodwill and stock price collapse,and fill in the gap in the study of the economic consequences of some performance commitments.The main limitations of this paper are:First,the research on the economic consequences of performance commitment is not thorough enough,and further research is still needed.Second,there are many metrics for explaining the variables in this paper.The ones that are selected for research are the more commonly used methods,and they are not verified one by one.Third,this paper selects the more representative Second-board market data as a sample for research,and the data is not comprehensive enough.