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Does Industrial Policy Increase Acquired Goodwill?
ZHAO Yanfeng1, TANG Xiangxi2
1. School of E-commerce and Logistics Management, Henan University of Economics and Law, Zhengzhou 450046, China; 2. School of Accounting, Zhongnan University of Economics and Law, Wuhan 430073, China
Abstract Acquired goodwill is one of the currently significant financial risks in our country, and the industrial policy is an important measure for the government to allocate resources. Current research does not give enough attention to how industrial policy affect acquired goodwill. This paper explores the relationship to guide industrial policy-making and enterprise takeover. Based on the encouraged industry development planning in “Five-Year Plan” in China, we collect the goodwill data of Shanghai and Shenzhen A-share listed companies from 2011 to 2018, using Logit model and DID model to test the impact of industrial policy on the acquired goodwill. The results show that the added acquired goodwill in the encouraged industry will increase significantly; and this impact varies according to the nature of property rights and marketization. Compared with private enterprises and regions with high marketization, the impact of industrial policies on the acquired goodwill is more significant in state-owned enterprises and low marketization areas.Further research indicates that the this impact is also influenced by the enterprises’ characteristics. The positive impact is more significant in the asset-light and high-market-attention samples.The mechanism tests show that the industrial policy can promote the goodwill of enterprises through increasing bank credit
2020, Vol. 37 
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