Goodwill Impairment,Information Environment And Risk Of Stock Price Crash Risk

The report of the Nineteenth National Congress of the Communist Party of China clearly pointed out that the main contradictions in our society have turned into the contradictions between the people's increasing needs for a better life and unbalanced and inadequate development.This requires accelerating supply-side reforms,realizing economic structural adjustment and industrial transformation and upgrading.As an important approach to structural transformation and upgrading,M & A and restructuring is being adopted by more and more companies,but at the same time,the negative impact of M & A and restructuring on companies and the market is becoming more and more important.The recognition and subsequent impairment of goodwill assets are highly subjective and can be easily manipulated by management,which exacerbates the degree of information asymmetry inside and outside the company,which causes stock price volatility and even causes stock price crashes.The article first sorts out the domestic and foreign literature related to the topic selection of the thesis;secondly,it discusses the economic consequences of goodwill and impairment of goodwill;again,it studies the relationship between goodwill,impairment of goodwill and the risk of stock price crash;further After determining the relationship between goodwill,impairment of goodwill and the risk of stock price crash,the information environment proxy variable of the number of analysts tracking is introduced to discuss the moderating role of the number of analysts tracking.Based on the existing research,focusing on the relationship between goodwill and the risk of stock price crash,the theory and methods of econometrics,management,finance,and accounting are used,and a combination of theoretical analysis and empirical research is used.China's Shanghai and Shenzhen A-share listed companies are used as the research object.The financial data published in 2014-2018 are used as samples to discuss the impact of goodwill and goodwill impairment on the risk of stock price crash,and the information environment between the two.The relationship regulating effect,draws the following conclusions:First,goodwill and impairment of goodwill are positively related to the risk of stock price crash.That is,the company with goodwill assets faces greater risk of stock price crash;the larger the scale of goodwill assets owned by the company,the greater the risk of stock price crash;the greater the company's subsequent goodwill impairment amount,the greater the risk of stock price crash.The recognition of goodwill assets generated by mergers is highly subjective.Many companies have not conducted subsequent impairment tests and lacked relevant information disclosure in the statements.In addition,goodwill needs to be tested for impairment with the asset group at the end of each period,but the definition of asset groups in China's accounting standards for enterprises has not yet been perfected.Management is likely to conduct earnings manipulation for the purpose of maintaining corporate image,delaying the announcement of negative news,and for its own "selfishness." This not only exacerbates the degree of asymmetry of corporate accounting information,but also damages market investor information,and eventually causes stock prices to collapse.Second,the information environment plays a moderating role in the relationship between goodwill,impairment of goodwill,and the risk of stock price crashes.As a proxy variable of the information environment,the analyst tracking quantity can effectively suppress the positive correlation between goodwill,impairment of goodwill and the risk of stock price crash.The analyst has professional analysis capabilities,team advantages and information collection channels,can effectively predict the financial status of the enterprise,and pass the analysis results to the capital market,thereby reducing information opacity and reducing the goodwill and stock price crash caused by impairment of goodwill risk.China's capital market is undergoing rapid development,but its development time is relatively short,and relevant policies and regulations have not yet been perfected.The goodwill and stock market crash risks discussed in this article are the key issues that need to be addressed in the empirical and theoretical circles in China.In this paper,the goodwill and impairment of goodwill are included in the scope of the study,and its impact on the company's stock price is examined.Based on this,the number of analysts is used as a proxy variable for the information environment,and the reduction of goodwill and goodwill by the information environment is discussed The impact of the relationship between the value and the risk of stock price crash provides a theoretical reference for listed companies to stabilize stock prices,correctly and reasonably confirm goodwill and impairment of goodwill,and provides policy makers with a strong theoretical basis for policy formulation.