文章基本信息

标题：The potential harms of goodwill impairment avoidance: Evidence based on future performance and stock prices
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作者：Hongwen Han ; Qingquan Tang
期刊名称：China Journal of Accounting Research
印刷版ISSN：1755-3091
出版年度：2020
卷号：13
期号：3
页码：1-19
DOI：10.1016/j.cjar.2020.07.007
出版社：Elsevier
摘要：The rapidly increasing volume of goodwill assets in the capital market generates potential risks due to the possibility of an untimely recognition of goodwill impairment. In this paper, we investigate the financial consequences of goodwill impairment avoidance based on firms’ future performance and stock prices. Using Chinese A-share listed firms with goodwill balances, we find that avoiding goodwill impairments negatively affects a firm’s performance growth and increases its risk of a future stock price crash. These adverse effects continue for the three years following the goodwill impairment avoidance. Our results indicate that goodwill impairment avoidance has detrimental impacts on a firm’s future performance and stock price and that these impacts are persistent. Our conclusions are helpful for regulators on how to prevent the risks hidden in goodwill impairment recognition and maintain the stable development of the financial market.
关键词：Goodwill impairment avoidance ; Firm performance ; Stock price crash risk ; Persistence