With the wave of M&A, total amount of goodwill balances has been accumulated to a enormous number in Chinese capital … market. Accounting Standards is controversial about high discretion in the goodwill subsequent measurements. This study … examines whether goodwill book value is consistent with corporate performance by using the decomposition of goodwill book value …

From the perspective of high-quality acquirers (with generated goodwill), this study analyses the conflicting issues in … the formation, recognition and subsequent measurement of goodwill and finds that good enterprises are not willing to make … a timely provision for goodwill impairment, and the reaction of investors implies a low value relevance of goodwill …