Impact of Executive Changes on Goodwill Impairment

Zhiqiang Li
2020 Modern Economy  
Based on the proxy theory, information asymmetry theory and signal transmission theory, this paper empirically tests the impact of executive changes on goodwill impairment. It uses the data of A-share listed companies in Shanghai and Shenzhen stock exchanges from 2010-2018 as samples. The research results show that: 1) Compared with companies that have not undergone executive changes, companies that have undergone executive changes have a greater degree of goodwill impairment; 2) The positive
more » ... rrelation between executive changes and goodwill impairment is only manifested in the companies audited by "non-Big Four", which implies that high audit quality can effectively play an external monitoring role and curb the opportunistic behavior of senior management.
doi:10.4236/me.2020.112041 fatcat:ceqltw4fbvbmvadxjxejpquqni