TITLE:
Impact of Executive Changes on Goodwill Impairment
AUTHORS:
Zhiqiang Li
KEYWORDS:
Executive Change, Goodwill Impairment, Audit Quality, A-Shares
JOURNAL NAME:
Modern Economy,
Vol.11 No.2,
February
27,
2020
ABSTRACT: 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 correlation 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.