Purchased Goodwill,Audit Quality And Corporate Debt Financing

With the development of enterprise mergerring wave,more and more company confirmed goodwill in the process of mergers and acquisitions,and the proportion of goodwill in the total assets becomes more and more big.Purchased goodwill received extensive attention of scholars.At present,there have been a lot of research in the field of purchased goodwill's economic consequences,but there are few studies based on the perspective of corporate debt financing to analyze the economic consequences of goodwill.Therefore,the author based on the year of 2007-2017 in Chinese A-stock market,analyzes the confirmation of purchased goodwill's impact on corporate debt financing,and introduce the audit quality,explore its adjustment action between purchased goodwill and corporate debt financing.This article is divided into seven parts including "introduction——literature review——definition of the concept and the theoretical basis——theoretical analysis and research hypothesis——research design——empirical test and analysis——conclusions and recommendations".The first part is introduction.This part mainly elaborated this article's research background,research significance,research content,research methods and possible innovations in this paper.The second part is literature review.This part firstly combed the literature of purchased goodwill measurement and economic consequences,the influence factor of debt financing,and the audit quality,finally summary and analysis on existing documents,finding out the research direction.The third part is definition of the concept and the theoretical basis.This part is mainly define the concept of purchased goodwill,cost of debt,debt maturity structure,and expounds the theoretical basis of this paper,including asymmetric information theory,principal-agent theory,signaling theory,incomplete contract theory and theory of "deep pocket".The fourth part is theoretical analysis and research hypothesis.This part based on the above theoretical basis,analyzing the relationship between purchased goodwill and enterprise debt financing,then analyzing the adjustment action of audit quality,finding the correspondency between phenomenon and theory,put forward this paper's research hypothesis.The fifth part is research design.This part based on theoretical analysis and the research hypothesis,select the research sample and introduce data sources.Then describe and define the variable,design the research model to make preparation for empirical analysis.The sixth part is empirical test and analysis.Firstly this part conduct descriptive statistics analysis of the selected sample,and then conduct regression analysis and OLS regression analysis between purchased goodwill and corporate debt financing,and the audit quality's adjustment action,finally conduct further analysis and robustness testing.The seventh part is conclusions and recommendations.Through summarizing the research's conclusion,putting forward some relevant recommendations and counter measures to realize the significance of this paper.Finally,summarize the deficiency of this paper.The study found that the greater the amount of purchased goodwill,the lower the cost of debt,the higher the proportion of long-term loan in debt maturity structure.And the improvement of the audit quality can enhance the relationship.Further study found that the improvement of internal control quality can also enhance the correlation between purchased goodwill and corporate debt financing.