IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v58y2022i11p3233-3247.html
   My bibliography  Save this article

Is Goodwill Attritional? Survival Analysis of the M&A Goodwill of A-Share Listed Company from 2007 to 2017

Author

Listed:
  • Kai Peng
  • Qiankun Gu
  • Yi Hu
  • Shuchang Jin
  • Juan Ni

Abstract

The subsequent measurement of goodwill in mergers and acquisitions has been controversial for a long time in academia and practice. This article attempts to propose a new conceptual view of the “attrition” of goodwill to improve the subsequent measurement model of goodwill. In this paper, the survival analysis method is introduced into the study of goodwill impairment decision-making and the influencing factors of economic life for the first time. Through the non-parametric analysis of Kaplan-Meier survival function, Nelson-Aalen cumulative risk function and risk rate function estimation, it is found that goodwill has the characteristics of wasting: the goodwill impairment risk of M&A projects is in an inverted U-shape and the goodwill starts to be impaired in the 3rd year on average within the 95% confidence interval, and the impairment risk rate reaches the highest (up to 8%) in the fifth year, and the probability of no impairment for 10 consecutive years is about 50%. Further regression analysis based on the survival risk model shows that human factors such as the pre-acquisition valuation level of the acquirer, management motivation and external supervision distort the impairment decision.

Suggested Citation

  • Kai Peng & Qiankun Gu & Yi Hu & Shuchang Jin & Juan Ni, 2022. "Is Goodwill Attritional? Survival Analysis of the M&A Goodwill of A-Share Listed Company from 2007 to 2017," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(11), pages 3233-3247, September.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:11:p:3233-3247
    DOI: 10.1080/1540496X.2022.2035718
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2022.2035718
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2022.2035718?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:58:y:2022:i:11:p:3233-3247. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.