Empirical Research On The Relationship Between Asset Impairment And Stock Price

In the a-share market at the beginning of 2019,goodwill became the "sword of Damocles" hanging over a-shares.With the disclosure of the performance information of listed companies,the whole market was filled with the sound of falling sword.With the expiration of performance commitments,the goodwill accumulated during the M&A frenzy from 2014 to 2016 has become a problem not only for listed companies,but also for other stakeholders participating in the capital market.How does asset impairment affect enterprise value? How does the market view the impairment of goodwill of listed companies? Does the motive of impairment provision affect the market’s processing of information? Based on the above questions,this paper discusses the correlation between asset impairment and stock price of listed companies through empirical research on the a-share market,and discusses the market’s value judgment on asset impairment information from the perspective of goodwill impairment and earnings management.This paper firstly sorted out relevant researches on asset impairment by domestic and foreign scholars,including the motivation of provision and withdrawal and the correlation with enterprise value.In addition,it also made some theoretical analysis on the reasons for premium merger and acquisition.On this basis,the research content of this paper is put forward.Because this article needs to discuss the influence of goodwill,so when selecting the research object,the listed companies with premium mergers and acquisitions in the A-share market are used as the research object.When selecting the research period,the period of three years from 2016 to 2018 as the data source after the peak period of the merger and acquisition,After screening out some invalid samples,4323 research samples were finally formed for empirical research.In empirical research part,this paper first discusses the correlation of asset impairment and stock price,and then join the goodwill impairment factors,to discuss whether the company’s accrual of goodwill impairment will affect the correlation between asset impairment and stock price.If it affects,it will increase or decrease.In addition,most scholars will involve earnings management when researching the impairment of assets by enterprises.They believe that the impairment of goodwill by enterprises is more due to the motivation of earnings management.The impact of stock price correlation,and further discussed the impact of goodwill impairment on the relationship between the two under the transmission mechanism of earnings management motivation.The study found that: asset impairment and stock prices have a significant negative correlation;in recent years,the number of companies withdrawing goodwill has gradually increased,and the amount of goodwill impairment has also gradually increased;the provision for goodwill impairment has weakened asset impairment Correlation with stock prices,and the larger the amount of goodwill impairment,the more obvious this weakening effect;the existence of earnings management will weaken the correlation between asset impairment and stock prices;under the conduction of earnings management,the impairment of goodwill The effect of weakening the correlation between the two is more significant.