Nowadays,the wave of mergers and acquisitions in the capital market is still surging.High evaluation does bring high performance,and the huge impairment of goodwill has become a key factor for the frequent Black Swan ...Nowadays,the wave of mergers and acquisitions in the capital market is still surging.High evaluation does bring high performance,and the huge impairment of goodwill has become a key factor for the frequent Black Swan events of listed companies.Starting from the essence of goodwill,using Chinese A-share listed companies from 2007 to 2019 as samples and based on the market data,distribution analysis and performance impact,this paper argues that problems of goodwill impairment in China are incomplete accounting standards,inexhaustive impairment implementation and incomprehensive market supervision,thus giving reasonable suggestions.Proper follow-up measurement of goodwill is conducive to improving accounting information quality and adapting to capital market demands,which is of great significance to the revision of international standards.展开更多
China’s longest serving political deputy legislator is a witness to history by Guo Ying SHE is an ordinary farmer,who has served a record 57 years in Chinese politics.Born into poverty,she was the first person in Ch...China’s longest serving political deputy legislator is a witness to history by Guo Ying SHE is an ordinary farmer,who has served a record 57 years in Chinese politics.Born into poverty,she was the first person in China’s history to put forward the concept of "equal pay for equal work" between men and women and as a village cadre she has been received by state leaders on many occasions. Her name is Shen Jilan,Deputy Secretary of the CPC Com-展开更多
This study investigates the effect of flexible tax enforcement on firms’excess goodwill using unique manually collected data on taxpaying credit rating in China from 2014 to 2021.We document that A-rated taxpayer fir...This study investigates the effect of flexible tax enforcement on firms’excess goodwill using unique manually collected data on taxpaying credit rating in China from 2014 to 2021.We document that A-rated taxpayer firms have less excess goodwill;A-rated firms reduce excess goodwill by 0.005 vis-a-vis non-Arated firms,which accounts for 100%of the mean value of excess goodwill.This finding holds after multiple robustness tests and an endogeneity analysis.Moreover,this negative effect is more pronounced in firms with low information transparency,that are non-state-owned and that are located in regions with low tax enforcement intensity.The channel test results suggest that taxpaying credit rating system as flexible tax enforcement reduces firms’excess goodwill through a reputation-based effect and not a governance-based effect.This study reveals that the taxpaying credit rating system in China as flexible tax enforcement can bring halo effect to A rating firms,thereby limiting irrational M&As and breaking goodwill bubble.展开更多
This study investigates the peer effect in the initial recognition of goodwill.We find that firms imitate their peers in the initial recognition of goodwill.The higher the tendency for imitation,the higher the proport...This study investigates the peer effect in the initial recognition of goodwill.We find that firms imitate their peers in the initial recognition of goodwill.The higher the tendency for imitation,the higher the proportion of goodwill recognized.Imitation behavior in the initial recognition of goodwill cannot be explained by information acquisition or rivalry motivations.Instead,we find evidence that managers’opportunistic motivations explain the peer effect in the initial recognition of goodwill and the overestimation of goodwill arising from imitation tendencies.Executive overconfidence weakens the peer effect but exacerbates the overestimation of goodwill caused by imitation tendencies.Finally,the higher the imitation tendency,the greater the probability and amount of goodwill impairment in the future.This further confirms that the peer effect leads to overestimation of goodwill.The findings of this study enrich the literature on goodwill and provide insightful empirical evidence for regulating goodwill accounting.The results show that the conservatism principle should be reinforced in the initial recognition of goodwill.展开更多
The rapidly increasing volume of goodwill assets in the capital market generates potential risks due to the possibility of an untimely recognition of goodwill impairment.In this paper,we investigate the financial cons...The rapidly increasing volume of goodwill assets in the capital market generates potential risks due to the possibility of an untimely recognition of goodwill impairment.In this paper,we investigate the financial consequences of goodwill impairment avoidance based on firms’future performance and stock prices.Using Chinese A-share listed firms with goodwill balances,we find that avoiding goodwill impairments negatively affects a firm’s performance growth and increases its risk of a future stock price crash.These adverse effects continue for the three years following the goodwill impairment avoidance.Our results indicate that goodwill impairment avoidance has detrimental impacts on a firm’s future performance and stock price and that these impacts are persistent.Our conclusions are helpful for regulators on how to prevent the risks hidden in goodwill impairment recognition and maintain the stable development of the financial market.展开更多
There has been a steady growth of goodwill impairments in the Chinese stock market since the adoption of the impairment approach in accounting.The influence of goodwill impairments on a firm’s financial position and ...There has been a steady growth of goodwill impairments in the Chinese stock market since the adoption of the impairment approach in accounting.The influence of goodwill impairments on a firm’s financial position and profitability give reason to doubt its current and future performance.We examine whether auditors,as a crucial external monitor,identify the information risks of goodwill impairments and express their concerns about financial reporting quality in their audit opinions.Using a sample of firms listed on China’s Ashare market from 2007 to 2017,we test the association between goodwill impairments and the type of audit opinion received in the same financial period.Our findings are as follows.First,the probability of receiving a modified opinion increases with the amount of goodwill impairments.Second,the positive association between goodwill impairments and modified audit opinions is driven primarily by earnings management risks.Third,this positive association is more salient when auditors are industry experts and there is no auditor–client mismatch.Fourth,auditors are more sensitive to the amount of goodwill impairments than to their mere existence.Overall,we document that auditors perceive goodwill impairments as a signal of information risks and communicate their concerns to investors to avoid litigation.展开更多
Chinese President Hu Jintao’s tour to Saudi Arabia highlights bilateral and regional cooperation chinese President Hu Jintao visited Saudi Arabia on February 10-12 before heading to Africa,a trip that helped cement C...Chinese President Hu Jintao’s tour to Saudi Arabia highlights bilateral and regional cooperation chinese President Hu Jintao visited Saudi Arabia on February 10-12 before heading to Africa,a trip that helped cement China’s bonds with the Middle Eastern country and beyond.展开更多
Geithner calms fears about U.S. treasury bonds on his first visit to China since taking office TI wo days before America’s biggest and iconic carmaker General Motors announced its bankruptcy on June 1, U.S. Treasury ...Geithner calms fears about U.S. treasury bonds on his first visit to China since taking office TI wo days before America’s biggest and iconic carmaker General Motors announced its bankruptcy on June 1, U.S. Treasury Secretary Timothy Geithner left for展开更多
Capturing many styles of oxen in gold, bronze,or dressed in colorful lights, is a delight to my camera eyes. In this, the Year of the Ox in the Chinese calendar, I am excited about prospects of a more adven-
The award ceremony Light of China—Chinese Cultural Communication Person of the Year—was held on Dec 15,2017.It was hosted by the State Council Information Office,the Overseas Chinese Affairs Office of the State Coun...The award ceremony Light of China—Chinese Cultural Communication Person of the Year—was held on Dec 15,2017.It was hosted by the State Council Information Office,the Overseas Chinese Affairs Office of the State Council,the Chinese People’s Association for Friendship with Foreign Countries,Confucius Institute Headquarters(Hanban)。展开更多
The present contribution arises with the intent of providing a brief, and therefore not exhaustive, theoretical accommodation of the problematics related to the programming and the achievement of an event. In reality,...The present contribution arises with the intent of providing a brief, and therefore not exhaustive, theoretical accommodation of the problematics related to the programming and the achievement of an event. In reality, the aim of the paper is to develop optimal advertising policies for an event that takes place at a given future instant of time (a sport game, a concert, a ballet or a theatre performance) and to minimize the advertising costs concerning the organization of the event. More precisely, the paper faces the problem of how to diffuse over time the informations about a forthcoming event among a population of potential participants and it takes into consideration, among the main vehicles for the dissemination of information, the word-of-mouth effect, a kind of advertising which is independent of the firm advertising policy.展开更多
文摘Nowadays,the wave of mergers and acquisitions in the capital market is still surging.High evaluation does bring high performance,and the huge impairment of goodwill has become a key factor for the frequent Black Swan events of listed companies.Starting from the essence of goodwill,using Chinese A-share listed companies from 2007 to 2019 as samples and based on the market data,distribution analysis and performance impact,this paper argues that problems of goodwill impairment in China are incomplete accounting standards,inexhaustive impairment implementation and incomprehensive market supervision,thus giving reasonable suggestions.Proper follow-up measurement of goodwill is conducive to improving accounting information quality and adapting to capital market demands,which is of great significance to the revision of international standards.
文摘China’s longest serving political deputy legislator is a witness to history by Guo Ying SHE is an ordinary farmer,who has served a record 57 years in Chinese politics.Born into poverty,she was the first person in China’s history to put forward the concept of "equal pay for equal work" between men and women and as a village cadre she has been received by state leaders on many occasions. Her name is Shen Jilan,Deputy Secretary of the CPC Com-
基金funded by a grant from the Natural Science Foundation of China(No.71762014)Soft Science Foundation in Gansu(No.23JRZA374).
文摘This study investigates the effect of flexible tax enforcement on firms’excess goodwill using unique manually collected data on taxpaying credit rating in China from 2014 to 2021.We document that A-rated taxpayer firms have less excess goodwill;A-rated firms reduce excess goodwill by 0.005 vis-a-vis non-Arated firms,which accounts for 100%of the mean value of excess goodwill.This finding holds after multiple robustness tests and an endogeneity analysis.Moreover,this negative effect is more pronounced in firms with low information transparency,that are non-state-owned and that are located in regions with low tax enforcement intensity.The channel test results suggest that taxpaying credit rating system as flexible tax enforcement reduces firms’excess goodwill through a reputation-based effect and not a governance-based effect.This study reveals that the taxpaying credit rating system in China as flexible tax enforcement can bring halo effect to A rating firms,thereby limiting irrational M&As and breaking goodwill bubble.
基金supported by the National Natural Science Foundation of China,China(71790603,71672198,71772188).
文摘This study investigates the peer effect in the initial recognition of goodwill.We find that firms imitate their peers in the initial recognition of goodwill.The higher the tendency for imitation,the higher the proportion of goodwill recognized.Imitation behavior in the initial recognition of goodwill cannot be explained by information acquisition or rivalry motivations.Instead,we find evidence that managers’opportunistic motivations explain the peer effect in the initial recognition of goodwill and the overestimation of goodwill arising from imitation tendencies.Executive overconfidence weakens the peer effect but exacerbates the overestimation of goodwill caused by imitation tendencies.Finally,the higher the imitation tendency,the greater the probability and amount of goodwill impairment in the future.This further confirms that the peer effect leads to overestimation of goodwill.The findings of this study enrich the literature on goodwill and provide insightful empirical evidence for regulating goodwill accounting.The results show that the conservatism principle should be reinforced in the initial recognition of goodwill.
基金supported by the National Natural Science Foundation of China,china(Project No.71672204)
文摘The rapidly increasing volume of goodwill assets in the capital market generates potential risks due to the possibility of an untimely recognition of goodwill impairment.In this paper,we investigate the financial consequences of goodwill impairment avoidance based on firms’future performance and stock prices.Using Chinese A-share listed firms with goodwill balances,we find that avoiding goodwill impairments negatively affects a firm’s performance growth and increases its risk of a future stock price crash.These adverse effects continue for the three years following the goodwill impairment avoidance.Our results indicate that goodwill impairment avoidance has detrimental impacts on a firm’s future performance and stock price and that these impacts are persistent.Our conclusions are helpful for regulators on how to prevent the risks hidden in goodwill impairment recognition and maintain the stable development of the financial market.
文摘There has been a steady growth of goodwill impairments in the Chinese stock market since the adoption of the impairment approach in accounting.The influence of goodwill impairments on a firm’s financial position and profitability give reason to doubt its current and future performance.We examine whether auditors,as a crucial external monitor,identify the information risks of goodwill impairments and express their concerns about financial reporting quality in their audit opinions.Using a sample of firms listed on China’s Ashare market from 2007 to 2017,we test the association between goodwill impairments and the type of audit opinion received in the same financial period.Our findings are as follows.First,the probability of receiving a modified opinion increases with the amount of goodwill impairments.Second,the positive association between goodwill impairments and modified audit opinions is driven primarily by earnings management risks.Third,this positive association is more salient when auditors are industry experts and there is no auditor–client mismatch.Fourth,auditors are more sensitive to the amount of goodwill impairments than to their mere existence.Overall,we document that auditors perceive goodwill impairments as a signal of information risks and communicate their concerns to investors to avoid litigation.
文摘Chinese President Hu Jintao’s tour to Saudi Arabia highlights bilateral and regional cooperation chinese President Hu Jintao visited Saudi Arabia on February 10-12 before heading to Africa,a trip that helped cement China’s bonds with the Middle Eastern country and beyond.
文摘Geithner calms fears about U.S. treasury bonds on his first visit to China since taking office TI wo days before America’s biggest and iconic carmaker General Motors announced its bankruptcy on June 1, U.S. Treasury Secretary Timothy Geithner left for
文摘Capturing many styles of oxen in gold, bronze,or dressed in colorful lights, is a delight to my camera eyes. In this, the Year of the Ox in the Chinese calendar, I am excited about prospects of a more adven-
文摘The award ceremony Light of China—Chinese Cultural Communication Person of the Year—was held on Dec 15,2017.It was hosted by the State Council Information Office,the Overseas Chinese Affairs Office of the State Council,the Chinese People’s Association for Friendship with Foreign Countries,Confucius Institute Headquarters(Hanban)。
文摘The present contribution arises with the intent of providing a brief, and therefore not exhaustive, theoretical accommodation of the problematics related to the programming and the achievement of an event. In reality, the aim of the paper is to develop optimal advertising policies for an event that takes place at a given future instant of time (a sport game, a concert, a ballet or a theatre performance) and to minimize the advertising costs concerning the organization of the event. More precisely, the paper faces the problem of how to diffuse over time the informations about a forthcoming event among a population of potential participants and it takes into consideration, among the main vehicles for the dissemination of information, the word-of-mouth effect, a kind of advertising which is independent of the firm advertising policy.
