The Influence Of Merger Goodwill On Business Performance

In recent years,China’s capital market has made great progress in the scale of assets and the number of enterprises.Made a significant contribution,at the same time,several rounds of wave of merger and acquisition between enterprises is also left the market with a larger m&a goodwill assets,goodwill as a special kind of accounting information,on behalf of the enterprise potential an excess return ability,the ability of decision factors from many aspects,not the specific measure,then embodies in enterprise mergers and acquisitions between the value of the difference.The size of goodwill directly reflects the gap between the expectation of enterprises and the average profitability of the industry to a certain extent,so there must be a certain relationship between it and the business performance of enterprises.Firstly,this paper reviews the status quo of mergers and acquisitions and goodwill assets in China’s market in recent years.According to the data of listed companies in China,on the whole,there are situations in which the proportion of m&a goodwill in the total assets is too high and the impairment of goodwill is relatively serious.The comparison from the perspective of the industry shows that the situation of listed companies related to software and information technology services is particularly serious.Secondly,empirical research is carried out on the impact of goodwill and goodwill impairment on the operating performance of enterprises and whether such impact exists in the long run.Taking a-share software and information technology service listed companies in China from 2013 to 2018 as samples,the study found that m&a goodwill positively affected the business performance of enterprises,and the effect lasted for one year.In other words,m&a goodwill positively affected the business performance of enterprises in the second year,but not significantly in thethird year.It is also found that the impairment of m&a goodwill has a negative impact on the operating performance of enterprises and this effect is not sustainable.Finally the author for merger and acquisition goodwill high proportion and goodwill in severe cases,combined with the empirical analysis conclusion,put forward several reasonable Suggestions,in the hope of our country accounting related laws and regulations to be more perfect,the market for the goodwill of a more scientific view and operation,software and information technology services listed companies when making major restructuring of enterprises and even the whole market more rational business accounting.