Managerial Ability, Financial Performance and Goodwill Impairment: A Moderated Mediation Analysis

Abstract

This paper examines whether and how managerial ability affects the likelihood of goodwill impairment of Chinese publicly listed companies over the period 2007-2017. We document a negative relationship between goodwill impairment and managerial ability, and uncover the mediation effect of corporate financial performance.Moreover, we find that the mediation effect is moderated by firms' earnings smoothing motivation and state ownership. The results suggest that when a company has the motivation to smooth earnings or is owned by the government, higher managerial ability of the company does not necessarily reduce the likelihood of goodwill impairment. The findings have important implications for investors and regulators.

أثر إدارة الأرباح بالأنشطة الحقيقية على العلاقة بين القدرة الإدارية وخسارة اضمحلال قيمة الشهرة في ضوء الأداء المالي للشركات المدرجة بالبورصة المصرية

“…. Boennen & Glaum, 2014;Schatt et al, 2016;Knauer & Wöhrmann, 2016;Satt & Chetioui, 2017;Gros & Koch, 2020;Han & Tang, 2020;Han et al, 2021;Alshehabi et al, 2021;Amel-Zadeh et Darrough el al., 2014;Korošec et al, 2016;Brands, 2016;Sun, 2016;Stenheim & Madsen, 2016;Hassine & Jilan, 2017;Johnston et al, 2018;Killins et al, 2021;Huang & Xiong, 2022 (Sun, 2016;Moura et al, 2019;Huang et al, 2020 (Korošec et al, 2016;Huang & Sun, 2017;Johnston et al, 2018; . ‫ونقد‬ ‫وجدت‬ ‫بعض‬ ‫اسات‬ ‫الدر‬ (AbuGhazaleh et al, 2011;Korošec et al, 2016;Huang & Sun,2017;Glaum et al, (Johnston et al, 2018;Kabir & Rahman, 2020;Gros & Koch, 2020;Yuan et al, 2020;Li, 2020) ‫اضمحالل‬ ‫ة‬ ‫خسار‬ ‫قياس‬ ‫يتم‬ ‫أو‬ ، ‫ويأخذ‬ ‫ة‬ ‫الشير‬ ‫قيمة‬ ‫اضمحالل‬ ‫ة‬ ‫بخسار‬ ‫اف‬ ‫االعتر‬ ‫عند‬ ‫احد‬ ‫و‬ ‫القيمة‬ ‫يأخذ‬ ‫وىمى‬ ‫كمتغير‬ ‫ة‬ ‫الشير‬ ‫قيمة‬ ‫ذلك‬ ‫عدا‬ ‫فيما‬ ‫صفر‬ ‫القيمة‬ (Stenheim & Madsen, 2016;Glaum et al, 2018;Johnston et al, 2018;Yuan et al, 2020 (Sun, 2016;Baik et al, 2020;Huang & Xiong, 2022) ‫السابقة‬...…”

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“…(Cohen et al, 2008;Cohen & Zarowin, 2010;Moradiet al, 2015;Ferentinou & Anagnostopoulou, 2016;Ali & Kamardin, 2018;El Diri, 2018;Zaher, 2019;Emudainohwo, 2021;Habib et al, 2022) . (Andreou et al, 2017;Habib and Hasan, 2017;Khurana et al, 2018;Lee et al, 2018;Demerjian et al, 2020;Huang et al, 2020 Demerjian et al, 2012Demerjian et al, , 2013Demerjian et al, , 2020Krishnan & Wang 2015;Veltri et al, 2016;Sun, 2016;Habib & Hasan, 2017;Huang & Sun, 2017;Yung & Chen, 2018;Gan, 2019;Huang et al, 2020 (Stenheim & Madsen, 2016;Glaum et al, 2018;Johnston et al, 2018;Yuan et al, 2020) . (Filip et al, 2015;Huang et al, 2020;Han & Tang, 2020;Suryani, 2021;Al Shaar et al, 2022) .…”

“…(Andreou et al, 2017;Habib and Hasan, 2017;Khurana et al, 2018;Lee et al, 2018;Demerjian et al, 2020;Huang et al, 2020 Demerjian et al, 2012Demerjian et al, , 2013Demerjian et al, , 2020Krishnan & Wang 2015;Veltri et al, 2016;Sun, 2016;Habib & Hasan, 2017;Huang & Sun, 2017;Yung & Chen, 2018;Gan, 2019;Huang et al, 2020 (Stenheim & Madsen, 2016;Glaum et al, 2018;Johnston et al, 2018;Yuan et al, 2020) . (Filip et al, 2015;Huang et al, 2020;Han & Tang, 2020;Suryani, 2021;Al Shaar et al, 2022) . (Cohen et al, 2008;Cohen & Zarowin, 2010;Moradiet al, 2015;Ali & Kamardin, 2018;El Diri, 2018;Zaher, 2019;Emudainohwo, 2021; (Johnston et al, 2018;Killins et al, 2021) .…”