A Study Of The Impact Of Independent Directors With Financial Background On The Value Relevance Of Goodwill Impairment

With the rising tide of corporate mergers and acquisitions,goodwill has become an increasingly important part of the listed company's assets.How to further improve the accounting of goodwill has become a key issue for scholars of all countries.Under the guidance of decision-making usefulness,many countries have revised accounting standards related to goodwill.The United States took the lead in introducing SFAS-142 in 2001,which stipulated that the goodwill formed by the merger of enterprises should not be amortized during the holding period,but should be tested periodically for impairment.China's "Accounting Standard for Business Enterprises No.8-Asset Impairment,issued in 2006 also made corresponding adjustments,to improve the usefulness of decision making in accounting information.Studies have shown that after the implementation of this series of accounting standards,the quality of accounting information of listed companies in China has been significantly improved,and the relevance of financial statements has also been enhanced.However,due to the complexity of the estimates involved in the impairment test of goodwill,it is very likely that it will be used by management for earnings management actions,which will reduce the reliability of goodwill impairment information.At the same time,the original intention of improving the usefulness of decision-making in accounting information is also violated.This has a negative impact on the orderly development of the capital market and investor confidence in accounting information.Studies have shown that high-quality internal control systems and internal and external audits can improve the reliability of goodwill impairment accounting information.For the first time,this paper studies the financial background of independent directors to supervise the behavior of management layer and improve the quality of information disclosure so as to increase the relevance of the impairment value of goodwill.It provides information users with a way to judge the reliability of the company's information,and at the same time,it is also consistent with the original intention of the implementation of the policy maker's inspection criteria,and provides data support for its future improvement.This article contains the following six parts.The first part,the introduction.This section introduces the background and value of the topic,the related literature review,the research framework and methods,and the innovations of this paper.The second part,the definition of the concept and the theoretical basis.This part clearly defines the concept of the independence of financial directors,the impairment of goodwill and the impairment value of goodwill,and explains and explains the theory involved in this paper,including the effective market hypothesis,principal-agent theory,reputation hypothesis,and busy hypothesis.The third part is theoretical analysis and research hypothesis.In view of the research content of this paper,this part is based on the specific theoretical analysis.The existing research results are supplemented by elaboration and reasoning,and three hypotheses are proposed.The fourth part,research design.In this part,the screening process and data source of the sample are specified.The empirical model is designed according to the existing literature and the variable selection and calculation method of the model are expounded.The fifth part,empirical test and analysis of results.In this part,the statistical analysis of the impairment of goodwill in the sample interval is firstly carried out,and the main variables are descriptively statistically analyzed to understand the overall situation of each variable,and the correlation test is carried out for each variable.Finally,the empirical results were obtained by multiple regression analysis and the relevant robustness tests were carried out.The sixth part is the conclusions and recommendations.This section mainly contains a summary of the previous empirical conclusions and recommendations for problems found during the writing process.This article takes the 2007-2016 period after China's implementation of the new accounting standards as the study interval,selects the A-share listed companies in Shanghai and Shenzhen that have confirmed the impairment loss of goodwill as research samples,and studies independent directors with financial background.The listed company discloses the impact of the value relevance of goodwill impairment information.The results of the study indicate that market investors will give a negative assessment to companies that recognize impairment losses on goodwill,that is,goodwill impairment information has value relevance.The scale of financial independent directors can effectively increase the value relevance of goodwill impairment;The more part-time number of financial independent director of a company is,the more effective the value relevance of goodwill impairment can be.The consistency between the financial independent director's work place and the place of registration of the listed company can significantly increase the value relevance of goodwill impairment information.In addition,the greater the size of the financial independent directors,the greater the number of part-time jobs,and the greater degree of localization,can lead to a positive reaction in the capital market and thus increase the stock price of the company.