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Media coverage and goodwill impairment

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  • Han, Hongwen
  • Hu, Rui
  • Tang, Jiali Jenna
  • Fu, Qing

Abstract

This study examines how media coverage influences goodwill impairment reporting in China. We find that higher media scrutiny reduces abnormal goodwill impairment by constraining opportunistic reporting decisions through information, reputation, and regulatory sanction mechanisms. Both policy and market-oriented media coverage contribute to this reduction. Media coverage significantly inhibits firms from avoiding impairment rather than overstating it. Results suggest a substitution effect between media coverage and other corporate governance mechanisms, such as auditors and institutional investors. Our main findings hold after addressing endogeneity issues. Overall, our findings support that media scrutiny plays a monitoring role in curbing opportunistic goodwill impairment reporting.

Suggested Citation

  • Han, Hongwen & Hu, Rui & Tang, Jiali Jenna & Fu, Qing, 2026. "Media coverage and goodwill impairment," Emerging Markets Review, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:ememar:v:70:y:2026:i:c:s156601412500144x
    DOI: 10.1016/j.ememar.2025.101395
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