Research On The Impact Of Goodwill Impairment And External Institutional Investors On Enterprise Value

China's securities regulatory commission issued revised measures on the management of material assets reorganization of listed enterprises and the management measures on the acquisition of listed enterprises in 2014.With the implementation of relevant measures for enterprises,China's securities regulatory commission began to promote the mergers and reorganizations of listed enterprises in China from more aspects.The mergers and reorganizations of listed enterprises in China have entered a new period of development.In 2018,a large number of listed enterprises released the announcement of goodwill accrual,many of which were the impairment of goodwill with a loss of more than one billion yuan,billions of yuan,and the huge amount of impairment of goodwill as a thunderclap across the sky of the financial market.Therefore,this paper takes the study of enterprise value as the starting point,further analyzes the influence of factors such as the value of goodwill and external institutional investors,and explores the correlation between goodwill and enterprise value brought about by mergers and acquisitions.Will the amount of goodwill impairment change affect the enterprise value? What is the relationship between external institutional investors and corporate value? Based on the above problems,this paper studies the relationship among goodwill impairment,external institutional investors and enterprise value.This paper studies RIM and LID models.Under the assumption that there is a risk-free arbitrage economy and accounting treatment satisfies the net surplus relationship,the ohlson valuation equation model is used as the basis.The research objects selected listed companies in China's A-share TMT industry,and the research samples adopted relevant financial data of listed companies in China from 2013 to 2017.In the case of controlling the related variables,data analysis software is used to analyze the data.The results show that TMT listed enterprise value is positively correlated with consolidated goodwill,and the increase of consolidated goodwill can bring value improvement.There is a negative correlation between the goodwill impairment of TMT enterprises and the enterprise value.When the combined goodwill suffers impairment,the enterprise value will also decline.The operating profit of listed enterprises that issue goodwill impairment announcement will also decline,affecting the business performance of enterprises.Therefore,listed enterprises should also consider the risk of goodwill impairment when they hope to increase the enterprise value brought by mergers andacquisitions.The increase of the shareholding of external institutional investors in TMT listed companies has a positive impact on enterprise value.Listed companies in which external institutional investors hold more shares have less risk of goodwill impairment than listed companies in which external institutional investors hold less shares.Corporate goodwill with a high degree of financial health is closely related to corporate value,and goodwill brings higher earnings to corporate value.Through the research results,this paper proposes Suggestions to stakeholders such as TMT enterprise managers and institutional investors.