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The impact of excess goodwill on stock market crash risk from an external auditing perspective

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  • Sun, Jingyi
  • Xia, Pengju
  • Xue, Li
  • Wu, Jiangning

Abstract

The aim of this study is to explore the impact of excess goodwill of Chinese A-share listed companies on the risk of stock price collapse, and to analyze the moderating role of external auditing in this relationship. The empirical results indicate that excess goodwill significantly increases the risk of stock price collapse, and high-quality external auditing can significantly reduce the positive impact of excess goodwill on stock price collapse risk. The study also conducted heterogeneity analysis on different industries and found that the impact of excess goodwill on stock price collapse risk in non manufacturing enterprises is significantly stronger than that in manufacturing enterprises.

Suggested Citation

  • Sun, Jingyi & Xia, Pengju & Xue, Li & Wu, Jiangning, 2025. "The impact of excess goodwill on stock market crash risk from an external auditing perspective," Finance Research Letters, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:finlet:v:74:y:2025:i:c:s1544612325000698
    DOI: 10.1016/j.frl.2025.106804
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    References listed on IDEAS

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