Reputation Herd Effect In The Disclosure Of Goodwill Impairment Information

This paper mainly analyzes the causes of the large-scale goodwill impairment events in 2018,and puts forward that the reputation herd effect in the goodwill impairment information disclosure is the key factor leading to the goodwill impairment information disclosure events.Herd effect of goodwill impairment information disclosure refers to the herd effect that enterprises disclose huge goodwill impairment to maintain the stable growth of the company's stock price and take a financial "bath" in order to maintain their reputation and share price and other advantages.Through comparison,it is found that the total goodwill of China's a-share market is rising in A straight line,and its proportion in net assets is also rising rapidly.Meanwhile,the scale of goodwill impairment has been rising continuously since 2014,but it is still far lower than the growth rate of goodwill.The only exception was the large-scale impairment of goodwill in 2018,which broke the trend that the growth rate of goodwill was much higher than the growth rate of impairment of goodwill,revealing very unreasonable information.This article after Dayduring preliminary statistics found that goodwill market in 2018 and disclosed the Industry cluster phenomenon is very serious,at the same time using central south cultural goodwill cases in this cluster is further discussed,found through the analysis of the Industry analysis,company net profit or merger situation analysis can get a consistent conclusion,namely reputation herd behavior led to the massive goodwill disclosure event.In order to further verify the conclusion of the preliminary marketability analysis,this paper conducts an empirical study by establishing weibull proportional risk model.The results show that the motivation of a company to disclose goodwill impairment information on a specific day is positively correlated with the number of companies in the same Industry that disclosed goodwill impairment information 10 days before the company,which empirically proves the existence of reputation herd effect.Conclusion in order to further expand,the next step,the paper discusses the enterprise cluster reputation to disclose the cause of herd behavior,from two aspects of corporate shares and corporate earnings management,the following conclusion: the cause of the enterprise cluster disclosed goodwill information basically has two,one is in order to maintain the company's future stock prices,create relatively good investment opportunities for investors,also for a few years after the enterprise relevant financial indicators to lay a good foundation;The second is to carry out earnings management within the company,to "wash" the performance and Smooth the earnings by taking impairment losses.At last,this paper puts forward the consequences of enterprises' collective disclosure of goodwill impairment information from the perspective of investors,enterprises and the market,and gives relevant policy Suggestions to enhance the credibility of this paper.Compared to the existing large number of social responsibility information disclosure a flock of sheep effect positive disclosure content such as research subject,this article,from the reputation herd behaviour to study such negative goodwill information disclosure problem,on the basis of the reason for further analysis and discussion,for China's market reforms have played a positive role.