Goodwill impairment, audit supervision and stock information content: Based on the empirical analysis of Chinese A-share listed companies
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In recent years, goodwill impairment has become a considerable risk in China’s capital market. This paper studies the effect of goodwill impairment on stock price from the perspective of the stock price informativeness and show that the impairment of goodwill is negatively correlated with the stock price informativeness. Furthermore, it is found that audit supervision has a significant inhibitory effect on the negative correlation between goodwill impairment and the stock price informativeness. This paper has enriched the research on the economic consequences of goodwill impairment, provided a new analysis perspective for investors to identify the information of stock price of listed companies and a new dimension for the study on the impact of goodwill impairment. The conclusions are helpful for the 19th national congress on maintaining the healthy and stable development of the financial market.
Goodwill impairment, Stock price informativeness, Audit Supervision