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Academic Journal of Business & Management, 2022, 4(17); doi: 10.25236/AJBM.2022.041714.

Goodwill Impairment and Market Reaction -Empirical Evidence from Chinese Listed Companies


Huijie Wang

Corresponding Author:
Huijie Wang

School of Management, Shanghai University, Shanghai, China


There is a significant increase of goodwill impairment, and the risk of goodwill impairment is gradually exposed to the public. The market reaction is a key object for investors as well as enterprises. The study of the market reaction to goodwill impairment is of great importance to make investment decisions for investors and manage the whole companies for the managers. In order to research the relationship between goodwill impairment and market reaction, this paper focuses on the A-share listed companies from 2014 to 2021. According to the research, it is found that goodwill impairment can lead to negative market reaction. The share price and value of companies can be reduced by goodwill impairment. As the impairment of goodwill increases, the market reaction of companies becomes more dramatic. Compared with state-owned companies, there is much more violent market reaction caused by the goodwill impairment of private companies. This study provides advice for decision making and corporate operations.


Goodwill impairment, Market reaction, Ownership type

Cite This Paper

Huijie Wang. Goodwill Impairment and Market Reaction -Empirical Evidence from Chinese Listed Companies. Academic Journal of Business & Management (2022) Vol. 4, Issue 17: 103-111. https://doi.org/10.25236/AJBM.2022.041714.


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