Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market

Ruoyu Wang

doi:doi:10.11648/j.si.20231103.12

| Peer-Reviewed

Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market

Ruoyu Wang

Published in Science Innovation (Volume 11, Issue 3)

Received: 1 April 2023 Accepted: 6 May 2023 Published: 18 May 2023

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Due to the current favorable economic situation in our country, companies are expanding their distribution scope by acquiring other small and medium-sized enterprises, leading to the emergence of goodwill in mergers and acquisitions. Investment efficiency is also an essential indicator for companies as it reflects their return on investment. Therefore, this article aims to find the relationship between the two through literature analysis and empirical research. Firstly, the origin and evolution of goodwill and the factors related to investment efficiency were analyzed through past literature, and the relevant theories related to goodwill in mergers and acquisitions and investment efficiency were discussed. Subsequently, the reasons for setting up research hypotheses were explained, and the corresponding sample selection was briefly summarized. Through regression analysis of variables and robustness tests, two conclusions were drawn. First, goodwill in mergers and acquisitions increased a company's non-efficiency investment, thereby reducing investment efficiency. Second, the inclusion of audit quality in the variables weakened the impact of goodwill in mergers and acquisitions on a company's investment efficiency. Therefore, two policy recommendations were proposed: to reduce a company's goodwill in mergers and acquisitions and to choose audit firms with relatively higher audit quality.

Published in	Science Innovation (Volume 11, Issue 3)
DOI	10.11648/j.si.20231103.12
Page(s)	104-110
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Merger and Acquisition, Goodwill Efficiency of Investment, A-Share Listed Companies

References

[1]	Bourne, J. H. Goodwill [J]. The Accountant, 1888, (9): 604—606.
[2]	Sterrett R B J E. Goodwill. Its Nature and How to Value Itby P. D. Leake [J]. The American Economic Review, 1915, 5 (1): 84-85.
[3]	Canning JB The economics of accountancy [J]. The Ronald Press Company, 1978.
[4]	Miller, Malcolm C. Goodwill: an aggregation issue [J]. The Accounting Review, 1973, 48 (2): 280-291.
[5]	RONALD, MA, ROGER, et al. Goodwill—an Example of Puzzle-Solving in Accounting—a Reply [J]. Abacus, 1992.
[6]	张鸣, 王明虎. 对商誉会计理论的反思 [J]. 会计研究, 1998 (4): 5.
[7]	于越冬. 人力资本与企业商誉的经济实质 [J]. 会计研究.
[8]	李玉菊, 张秋生, 谢纪刚. 商誉会计的困惑、思考与展望——商誉会计专题学术研讨会观点综述 [J]. 会计研究, 2010, 000 (008): 87-90.
[9]	Biddle G C, Hilary G, Verdi R S. How Does Financial Reporting Quality Relateto Investment Efficiency? [J]. Social Science Electronic Publishing.
[10]	Chen S, Zheng S, Song T, et al. Government intervention and investmentefficiency: Evidence from China [J]. Journal of Corporate Finance, 2011, 17 (2): 259-271.
[11]	杨华军, 胡奕明. 制度环境与自由现金流的过度投资 [J]. 管理世界.
[12]	辛清泉, 林斌, 王彦超. 政府控制、经理薪酬与资本投资 [J]. 经济研究, 2007, 42 (8): 13.
[13]	魏明海, 柳建华. 国企分红、治理因素与过度投资 [J]. 管理世界, 2007 (4): 8.
[14]	姜付秀. 管理者背景特征与企业过度投资行为 [J]. 管理世界, 2009 (1): 10.
[15]	俞红海, 徐龙炳, 陈百助. 终极控股股东控制权与自由现金流过度投资 [J]. 经济研究, 2010 (8): 12.
[16]	刘慧龙, 吴联生, 王亚平. 国有企业改制、董事会独立性与投资效率 [J]. 金融研究, 2012 (9): 14.
[17]	林煜恩, 刘雪芳, 朱健齐. 反腐败对投资效率的影响: 基于可持续发展视角 [J]. 华东经济管理, 2019, 33 (8): 13.
[18]	贺雪霞, 王宇. 内部控制与公司投资效率 [J]. 会计之友,
[19]	邵学峰, 胡明. 金融科技有助于提升企业投资效率吗?——基于中国A股上市企业的实证研究.
[20]	徐霞, 蔡熙乾. 电子政务能提高企业投资效率吗?——基于电子政务县级试点的准自然实验 [J]. 经济管理, 2021, 43 (11): 17.
[21]	张阳, 徐子慧, 姜思雨. 并购商誉, 外部监督与审计师定价策略 [J]. 会计之友, 2021 (21): 8.

Cite This Article

Plain Text BibTeX RIS

APA Style

Ruoyu Wang. (2023). Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market. Science Innovation, 11(3), 104-110. https://doi.org/10.11648/j.si.20231103.12

Copy | Download

ACS Style

Ruoyu Wang. Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market. Sci. Innov. 2023, 11(3), 104-110. doi: 10.11648/j.si.20231103.12

Copy | Download

AMA Style

Ruoyu Wang. Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market. Sci Innov. 2023;11(3):104-110. doi: 10.11648/j.si.20231103.12

Copy | Download

@article{10.11648/j.si.20231103.12,
  author = {Ruoyu Wang},
  title = {Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market},
  journal = {Science Innovation},
  volume = {11},
  number = {3},
  pages = {104-110},
  doi = {10.11648/j.si.20231103.12},
  url = {https://doi.org/10.11648/j.si.20231103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.si.20231103.12},
  abstract = {Due to the current favorable economic situation in our country, companies are expanding their distribution scope by acquiring other small and medium-sized enterprises, leading to the emergence of goodwill in mergers and acquisitions. Investment efficiency is also an essential indicator for companies as it reflects their return on investment. Therefore, this article aims to find the relationship between the two through literature analysis and empirical research. Firstly, the origin and evolution of goodwill and the factors related to investment efficiency were analyzed through past literature, and the relevant theories related to goodwill in mergers and acquisitions and investment efficiency were discussed. Subsequently, the reasons for setting up research hypotheses were explained, and the corresponding sample selection was briefly summarized. Through regression analysis of variables and robustness tests, two conclusions were drawn. First, goodwill in mergers and acquisitions increased a company's non-efficiency investment, thereby reducing investment efficiency. Second, the inclusion of audit quality in the variables weakened the impact of goodwill in mergers and acquisitions on a company's investment efficiency. Therefore, two policy recommendations were proposed: to reduce a company's goodwill in mergers and acquisitions and to choose audit firms with relatively higher audit quality.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market
AU  - Ruoyu Wang
Y1  - 2023/05/18
PY  - 2023
N1  - https://doi.org/10.11648/j.si.20231103.12
DO  - 10.11648/j.si.20231103.12
T2  - Science Innovation
JF  - Science Innovation
JO  - Science Innovation
SP  - 104
EP  - 110
PB  - Science Publishing Group
SN  - 2328-787X
UR  - https://doi.org/10.11648/j.si.20231103.12
AB  - Due to the current favorable economic situation in our country, companies are expanding their distribution scope by acquiring other small and medium-sized enterprises, leading to the emergence of goodwill in mergers and acquisitions. Investment efficiency is also an essential indicator for companies as it reflects their return on investment. Therefore, this article aims to find the relationship between the two through literature analysis and empirical research. Firstly, the origin and evolution of goodwill and the factors related to investment efficiency were analyzed through past literature, and the relevant theories related to goodwill in mergers and acquisitions and investment efficiency were discussed. Subsequently, the reasons for setting up research hypotheses were explained, and the corresponding sample selection was briefly summarized. Through regression analysis of variables and robustness tests, two conclusions were drawn. First, goodwill in mergers and acquisitions increased a company's non-efficiency investment, thereby reducing investment efficiency. Second, the inclusion of audit quality in the variables weakened the impact of goodwill in mergers and acquisitions on a company's investment efficiency. Therefore, two policy recommendations were proposed: to reduce a company's goodwill in mergers and acquisitions and to choose audit firms with relatively higher audit quality.
VL  - 11
IS  - 3
ER  -

Copy | Download

Author Information

Ruoyu Wang

School of Management Mpacc, University of Shanghai for Science and Technology, Shanghai, China

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Ruoyu Wang. (2023). Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market. Science Innovation, 11(3), 104-110. https://doi.org/10.11648/j.si.20231103.12

Copy | Download

ACS Style

Ruoyu Wang. Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market. Sci. Innov. 2023, 11(3), 104-110. doi: 10.11648/j.si.20231103.12

Copy | Download

AMA Style

Ruoyu Wang. Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market. Sci Innov. 2023;11(3):104-110. doi: 10.11648/j.si.20231103.12

Copy | Download

@article{10.11648/j.si.20231103.12,
  author = {Ruoyu Wang},
  title = {Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market},
  journal = {Science Innovation},
  volume = {11},
  number = {3},
  pages = {104-110},
  doi = {10.11648/j.si.20231103.12},
  url = {https://doi.org/10.11648/j.si.20231103.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.si.20231103.12},
  abstract = {Due to the current favorable economic situation in our country, companies are expanding their distribution scope by acquiring other small and medium-sized enterprises, leading to the emergence of goodwill in mergers and acquisitions. Investment efficiency is also an essential indicator for companies as it reflects their return on investment. Therefore, this article aims to find the relationship between the two through literature analysis and empirical research. Firstly, the origin and evolution of goodwill and the factors related to investment efficiency were analyzed through past literature, and the relevant theories related to goodwill in mergers and acquisitions and investment efficiency were discussed. Subsequently, the reasons for setting up research hypotheses were explained, and the corresponding sample selection was briefly summarized. Through regression analysis of variables and robustness tests, two conclusions were drawn. First, goodwill in mergers and acquisitions increased a company's non-efficiency investment, thereby reducing investment efficiency. Second, the inclusion of audit quality in the variables weakened the impact of goodwill in mergers and acquisitions on a company's investment efficiency. Therefore, two policy recommendations were proposed: to reduce a company's goodwill in mergers and acquisitions and to choose audit firms with relatively higher audit quality.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Empirical Study on the Impact of Goodwill in Mergers and Acquisitions on Investment Efficiency of Listed Companies in A-Share Market
AU  - Ruoyu Wang
Y1  - 2023/05/18
PY  - 2023
N1  - https://doi.org/10.11648/j.si.20231103.12
DO  - 10.11648/j.si.20231103.12
T2  - Science Innovation
JF  - Science Innovation
JO  - Science Innovation
SP  - 104
EP  - 110
PB  - Science Publishing Group
SN  - 2328-787X
UR  - https://doi.org/10.11648/j.si.20231103.12
AB  - Due to the current favorable economic situation in our country, companies are expanding their distribution scope by acquiring other small and medium-sized enterprises, leading to the emergence of goodwill in mergers and acquisitions. Investment efficiency is also an essential indicator for companies as it reflects their return on investment. Therefore, this article aims to find the relationship between the two through literature analysis and empirical research. Firstly, the origin and evolution of goodwill and the factors related to investment efficiency were analyzed through past literature, and the relevant theories related to goodwill in mergers and acquisitions and investment efficiency were discussed. Subsequently, the reasons for setting up research hypotheses were explained, and the corresponding sample selection was briefly summarized. Through regression analysis of variables and robustness tests, two conclusions were drawn. First, goodwill in mergers and acquisitions increased a company's non-efficiency investment, thereby reducing investment efficiency. Second, the inclusion of audit quality in the variables weakened the impact of goodwill in mergers and acquisitions on a company's investment efficiency. Therefore, two policy recommendations were proposed: to reduce a company's goodwill in mergers and acquisitions and to choose audit firms with relatively higher audit quality.
VL  - 11
IS  - 3
ER  -

Copy | Download