Introduction Of Subsidiary High Speed Railway And Timeliness Of Impairment Of Acquisition Goodwill

The implementation of goodwill impairment test method not only enhances the prediction ability of future cash flow,but also improves the timeliness of accounting information.However,in this process,managers have a strong motivation to use the discretion in the accounting standard to delay or advance the recognition of goodwill impairment to adjust earnings,then reduces the usefulness of accounting information.However,if the high speed railway is introduced in the location of the subsidiary,this problem will be alleviated,because the time and space distance among regions will be shortened after the introduction of the high speed railway in the location of the subsidiary,which can promote the efficiency of information transmission between the headquarters and the subsidiary,reduce the degree of information asymmetry and supervision cost,and improve the information quality of the company.As a result,the opportunity for management to exercise discretion will be reduced,which will affect the recognition of goodwill impairment.Whether the impairment loss of goodwill can timely reflect the decline of the economic value of the company’s goodwill balance and whether the introduction of the high speed railway where the subsidiary is located can improve the timeliness of impairment is an empirical problem.In this study,taking the introduction of high speed railway as a quasi natural event,an empirical test was carried out to determine whether the impairment of goodwill is recognized in time and the impact of the introduction of subsidiary high speed railway on the timeliness of acquisition goodwill impairment.According to the research,we find that under normal circumstances,the goodwill impairment of listed companies in China is not recognized in time.Furthermore,the introduction of the high speed railway where the subsidiary is located can improve the timeliness of the impairment of acquisition goodwill.At the same time,the two groups of heterogeneity test and the path mechanism of the introduction of high speed railway on the timeliness of goodwill impairment were adopted to support the research conclusions of this study.In order to carry out the demonstration of the robustness of the conclusion,the measurement method of variables was replaced.After parallel trend test,placebo test and PSM test,the same conclusion as the hypothesis was drawn.Based on the information and supervision channels,the conclusion that the subsidiaries that have introduced high speed railway in the location can improve the timeliness of acquisition goodwill impairment better than those that have not introduced high speed railway was confirmed,which can effectively promote the company to improve its governance mechanism,improve its governance organization,improve its information environment,reduce its information asymmetry,and provide high quality information to stakeholders in time.In addition,it will help the company and government policies alleviate the problem of resource allocation differences caused by geographical location,and improve the current situation of poor information quality caused by the remote geographical location of the company through two-way optimization.