Research On The Impact Of Goodwill Impairment Of Technology Companies On Abnormal Returns

The issue of goodwill impairment has become a hot issue in the capital market in the past two years,and after the merger and acquisition boom that began in 2014,the hidden dangers of goodwill are becoming more and more obvious,and the number of goodwill impairment events at the end of the year is increasing.The calculation of large goodwill impairment implies the low quality of mergers and acquisitions,and in order to expand blindly on a large scale and market value,this unhealthy mode of development is finally made public through goodwill impairment,which not only harms the interests of the company and shareholders,but also disrupts the market order.Science and technology-based enterprises because of the particularity of their operations are facing greater risks of goodwill,the actual loss of goodwill of the majority of enterprises are science and technology-based enterprises.Based on the 2008-2018 goodwill impairment of technology companies as a sample,this paper studies the market impact of goodwill impairment information of listed companies,and examines the relationship between goodwill impairment and cumulative excess rate of return during the event window,the quality of accounting information,The influence of investors' irrational behavior and research and development innovation ability on the above-mentioned relationship.The results show that in the event window period,the degree of goodwill impairment is significantly negatively correlated with the cumulative excess rate of return,and individual stocks with higher degree of goodwill impairment are less likely to obtain excess income in the short term,but more likely to have excess losses.Companies with high quality accounting information are less affected by goodwill impairments,specifically,companies that did not deliberately increase profits in the previous period were less affected by goodwill impairments in the current period.The irrational behavior of investors has aggravated the impact of goodwill impairment events,and in the empirical analysis,individual stocks with low cumulative excess turnover rate are greatly affected by goodwill impairment.Research and development innovation ability can effectively alleviate the negative market effect of goodwill impairment,the high proportion of research and development personnel,high research and development cost rate,high proportion of invention patents companies are less affected by goodwill impairment,indicating that science and technology enterprises to enhance their own research and development innovation ability can resist the negative market effects of negative investment disadvantage.