The Risk Of Impairment Of Goodwill, Overconfidence Of Management And Stock Price Collapse

In recent years,China's capital market has experienced multiple waves of mergers and acquisitions.The scale of goodwill of listed companies' M&A has achieved rapid growth,and the subsequent potential goodwill impairment risks cannot be ignored.Impairment of goodwill means that the acquired party fails to achieve the expected performance goals,and the asymmetric disclosure of company information by management will cause negative information to accumulate in the company.When negative information cannot be hidden,it will flood the securities market From time to time,the company's stock price tends to fall off a cliff,causing a stock price crash.This article focuses on the M&A and restructuring scenario in the Chinese capital market,and selects A-share non-financial listed companies from 2011 to 2018 as a research sample to explore the impact of goodwill impairment on the risk of stock price crash.In addition,based on the perspective of behavioral finance,this article incorporates management overconfidence,goodwill impairment and company stock price crash risk into a unified research framework,and analyzes the regulatory effect of managerial overconfidence on the relationship between goodwill impairment and stock price crash risk.The study found that:(1)The scale of goodwill impairment is significantly positively related to the risk of the company's stock price crash.(2)Compared with companies with low levels of management overconfidence,in companies with higher levels of management overconfidence,the stronger the positive relationship between the impairment of goodwill and the risk of stock price collapse.(3)Further group testing shows that in companies with high turnover rates,companies with high valuation levels,or years with good market conditions,the relationship between goodwill impairment and stock price collapse risk is significantly positive,and state-owned property rights can To a certain extent,it inhibits the aggravating effect of impairment of goodwill on the risk of stock price crash.This paper further expands the research on the economic impact of scale expansion by listed companies using M&A and restructuring tools.It has certain reference value for improving the performance of corporate mergers and acquisitions,and also has a certain enlightenment on how to prevent the risk of listed company stock price collapse.