| Since 2014,there have been more and more mergers and acquisitions with a high premium.High goodwill asset is accompanied by the high goodwill risk.The risk of goodwill impairment has aroused the attention of the government.The Accounting Risk Notice Pretention No.8:Goodwill Impairment issued by the CSRC in 2018 warned against this risk.Affected by notice,many companies accrued losses of goodwill impairment,and the scale of goodwill impairment increased by 351.37%in 2018.It is of great practical significance to study the impact of overconfidence on the impairment of goodwill.This paper summarizes the relevant studies on the connections between managerial overconfidence and mergers and acquisitions,and the causes of goodwill impairment.Based on the Overconfidence Theory and the Upper Echelons Theory.Then the paper puts forward assumptions and builds models.This paper selects the annual panel data of a total A share listed companies from 2013 to 2021,and uses the multivariable linear regression model to analyze the impact of managerial overconfidence on goodwill impairment.This paper also uses the mediation model to study the transmission path from management overconfidence to goodwill impairment.The results show that:(1)Managerial overconfidence has a significant positive effect on goodwill impairment.(2)M&A premium and merges management motivation play an intermediary effect between management overconfidence and goodwill impairment.Management overconfidence will lead to higher earnings management motivation("bath" motivation)and M&A premium.Higher earnings management motivation("bath" motivation)and M&A premium will lead to higher goodwill impairment.(3)The effect of management overconfidence on goodwill impairment is different in different conditions.Compared with enterprises with high asset-liability ratio,overconfidence has a more significant impact on goodwill impairment of enterprises with low asset-liability ratio.Compared with enterprises with high board independence,overconfidence has a more significant impact on the goodwill impairment of enterprises with low board independence.Compared with state-owned enterprises,overconfidence has a more significant impact on the goodwill impairment of non-state-owned enterprises. |
