Female Executives, Industry Sentiment And Goodwill

Discussions and studies on merger and acquisition premiums and impairment of goodwill are protracted.In the past research on goodwill,scholars have discussed the factors affecting M&A premium and goodwill impairment from the perspectives of senior management demographics,psychological and behavioral characteristics,corporate governance mechanisms,and future cash flow.However,most of these studies are based on the internal environment of the enterprise.How does the external environment affect management and the impact on goodwill?The research of these scholars does not explain the problem well.This article introduces the industry boom,and in-depth studies on the role of female executives in the acquisition of goodwill.This article mainly studies the two aspects of goodwill recognition and goodwill impairment in M&A goodwill,and discusses how female executives affect these two aspects.Female executives are generally not overly confident and risk-averse.It is easier to reject projects with high premiums in mergers and acquisitions.Their sensitive,meticulous,and communicative qualities help M&A events to be achieved.For post-merger integration,female executives Joining can make the corporate team better play synergy effects and further improve corporate performance.Therefore,this article expects that female executives will be able to suppress goodwill recognition and reduce the extent of goodwill impairment.Immediately afterwards,this article introduces the business climate of the industry.When the overall economic situation of the industry improves,overly confident management tends to overpay,and the cautious and risk-avoiding characteristics of female executives can reduce this tendency,and at the same time,target companies in a relaxed environment are more likely to achieve promised performance The risk of goodwill impairment decreases;and when the industry environment deteriorates,whether it is male executives or female executives,M&A decisions are usually made more cautiously,for the purpose of "bath shower" earnings management and strong Risk aversion characteristics,female executives may accrue a larger amount of goodwill impairment provision.Therefore,this article predicts that when the industry is booming,female executives will have a stronger inhibitory effect on the recognition of goodwill and the impairment of goodwill.Further,this article divides the sample companies into two grroups,state-owned and private,and examines the role of industry prosperity in the recognition of female executives and goodwill,and the adjustment of goodwill impairment under different natures of equity.This article selects A-share listed companies form 2008 to 201 7 as the research sample.Through data analysis and empirical research,it is found that:(1)female executives have a restraining effect on the recognition of goodwill in mergers and acquisitions;(2)the higher the industry prosperity,The stronger the inhibitory effect of female executives on the recognition of goodwill;(3)female executives have an inhibitory effect on the impairment of goodwill;(4)the higher the industry boom,the more inhibitive effect of female executives on the impairment of goodwill Strong;(5)Compared with state-owned enterprises,the role of industry boom in the recognition of female executives and goodwill,and the adjustment of goodwill impairment is more obvious in private enterprises.Finally,this article puts forward corresponding suggestions.This paper believes that companies can actively hire capable female executives to allow them to give play to women’s unique capabilities and leadership styles,which is conducive to the steady operation of the company,enhances the credibility of its accounting information,and enhances investor confidence in the company.When assessing the goodwill impairment test,the auditor should take full account of the external environment and the stage of development of the audited unit,and then identify possible risks of material misstatement.