Study On The Impact Of Goodwill Impairment On The Risk Of Stock Price Crash

In recent years,with the maturity of China’s capital market,more and more enterprises have adopted M&A to carry out transformation and upgrading,which has more profound significance for the reform of state-owned enterprises.In view of the development trend of A-share listed companies,this paper takes A-share listed companies from 2008 to 2021 as the research object to study the impact of business reputation impairment on stock price collapse risk.This paper uses the nature of the enterprise and the industry in which the enterprise operates to group the samples,and conducts grouping regression and comparative analysis of the results.This paper analyzes from four perspectives:analyst concern,institutional investor shareholding,degree of information asymmetry,and investor sentiment.Using these four variables as adjusting variables,this paper studies the role of these four variables in the impact of corporate goodwill impairment on stock price collapse risk,with a view to providing reference for listed companies in selecting merger and acquisition strategies.According to the research results of this paper,we can find that there is a positive correlation between the impairment of goodwill and the risk of stock price collapse.This is mainly due to the fact that the performance of the subject matter of M&A fails to meet expectations or fails to fulfill commitments,which leads to the company’s performance failing to meet expectations and leads to the deterioration of profitability,which increases the risk of stock price collapse of listed companies.From the research on the nature of the sub enterprise,compared with the state-owned enterprises,the impact of goodwill impairment on the risk of stock price collapse is more significant in non-state-owned enterprises;From the perspective of industry research,compared with other industry listed companies,the impact of goodwill impairment on the risk of stock price collapse is more significant.From the perspective of impact mechanism,the higher the analyst’s concern,the higher the shareholding ratio of institutional investors,the lower the degree of information asymmetry,and the lower the investor’s sentiment,the more the positive correlation between goodwill impairment and stock price collapse risk can be weakened.On the basis of the research conclusion of this paper,this paper puts forward policy suggestions from the three perspectives of listed company supervision,listed company operation and investors,in order to encourage listed companies to strengthen goodwill management,reduce the risk of stock price collapse of listed companies,and strengthen the protection of small and medium-sized investors.