Study On The Influence Of M&A Goodwill On Enterprise Long-term Performance

Merger and acquisition has always been a hot topic of attention in the capital market,and as the economy continues to develop,Chinese merger and acquisition transactions become increasingly frequent.After the revision of the merger and acquisition method in 2014,the enthusiasm of the company has been greatly improved.At the same time,the increase in the amount of M&A also makes the purchased goodwill gain more attention,and the influence on the development of enterprises is also increasing.The essence of purchased goodwill is the excess earnings effect of merger and reorganization activities on merged enterprises and the synergistic effect of resource integration.In recent years,the ratio of purchased goodwill in assets is increasing,which also has a more important impact on enterprise performance.Then,can purchased goodwill bring positive enterprise performance? Does purchased goodwill have a long-term impact on enterprise performance? Is the effect different among companies with different property rights? This is exactly the question to be explored in this paper.As the decision-making body in the process of merger and acquisition,the management of an enterprise plays a pivotal role in the development of enterprise performance.Therefore,this paper takes the management characteristics as moderator variables to explore its moderating effect on the relationship between the purchased goodwill and the long-term performance of an enterprise.As management characteristics involve a wide range of levels,this paper divides the subjective and objective levels of management and selects four typical factors to analyze their moderating effects on purchased goodwill and enterprise long-term performance.The internal characteristics of managers mainly select the level of self-confidence and personal ability of managers,while the external factors mainly select the shareholding ratio and scale of managers.Based on the theory of overconfidence,principal-agent theory and manager defense theory,this paper takes purchased goodwill,manager characteristics and enterprise performance into the same research framework.It takes A-share listed companies in Shanghai and Shenzhen that disclose purchased goodwill from 2016 to 2021 as samples to empirically-analyze the relationship between variables.The empirical test results show that:(1)purchased goodwill is negatively correlated with long-term performance;(2)Compared with state-owned enterprises,purchased goodwill in non-state-owned enterprises has a greater negative impact on long-term performance;(3)Managers’ overconfidence and management shareholding ratio will aggravate the negative impact of purchased goodwill on enterprise long-term performance;(4)Management ability and management scale can inhibit the negative impact of purchased goodwill on enterprise long-term performance.This article makes a comprehensive analysis of the current situation of purchased goodwill in our country.It systematically studies the effect of purchased goodwill on the long-term performance of the enterprise and the role of the nature of enterprises and the characteristics of management on the two,which enriches the relevant researches in the fields of enterprise mergers and acquisitions,purchased goodwill,management,and enterprise performance.Finally,the paper puts forward specific suggestions from the regulatory authorities,enterprises,investors and other levels for scholars’ reference.