Share This Article:

Review of Managerial Overconfidence and Corporate Acquisition Goodwill Impairment Research

Full-Text HTML XML Download Download as PDF (Size:235KB) PP. 121-128
DOI: 10.4236/jss.2020.81010    25 Downloads   87 Views
Author(s)

ABSTRACT

In recent years, the large amount of goodwill impairment caused by high-priced mergers and acquisitions has also aroused widespread discussion. Why do companies purchase at a high premium? What effect does a high premium have on the impairment of goodwill? With the development of behavioral finance, this article uses the perspective of overconfidence in this theory, and answers the above two questions by reviewing the domestic and foreign literature. We find that the overconfidence in management tends to form the overpayment in corporate acquisitions, and the overpayment is more likely to lead to the goodwill impairment. At last, this article also proposes future research directions and I hope it can provide theoretical references for future related research.

Cite this paper

Weng, H. (2020) Review of Managerial Overconfidence and Corporate Acquisition Goodwill Impairment Research. Open Journal of Social Sciences, 8, 121-128. doi: 10.4236/jss.2020.81010.

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.