The Impact of Excess Goodwill on Innovation Performance of Cultural and Creative Enterprises

DOI

10.2991/978-2-38476-458-7_2How to use a DOI?

Keywords

Excess Goodwill; Corporate Innovation; Cultural and Creative Enterprises

Abstract

In recent years, the frequent M&A of listed companies in China have triggered rapid accumulation of goodwill assets, which has aroused the attention and extensive discussion of all walks of life. The essence of goodwill comes from M&A, while excess goodwill is an irrational part of M&A. This study selects the 2010-2020 Chinese A-share listed cultural and creative companies (CCIs) as samples to empirically test the impact of excess goodwill on CCIs’ innovation performance. The results show that excess goodwill has a significant negative impact on innovation output, innovation efficiency, radical innovation, and incremental innovation. After a series of robust tests, such as changing the measurement method of main research variables, using the instrumental variable method the Heckman two-step method to control endogeneity and Bootstrap test of mediating effects, the conclusion still holds. Further research found that under the framework of CCI, excess goodwill mainly weakens corporate innovation performance by increasing debt financing costs, knowledge stock can effectively alleviate the negative impact of excess goodwill on innovation performance, whereas knowledge absorptive capacity cannot alleviate that. Finally, this article not only studies the impact of M&A goodwill on corporate innovation, which enriches the research on goodwill and corporate innovation performance as well as related financial research on CCIs, but also practically provides empirical evidence and enlightenment for listed companies, regulators, and investors to realize the economic consequences of unreasonable M&A and excess goodwill with corresponding action and influence mechanisms.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Chen Yuduo
AU  - Xu Yiqi
AU  - Qin Yue
PY  - 2025
DA  - 2025/08/30
TI  - The Impact of Excess Goodwill on Innovation Performance of Cultural and Creative Enterprises
BT  - Proceedings of the 2025 International Conference on Global Cultural and Creative Industries (ICGCCI 2025)
PB  - Atlantis Press
SP  - 4
EP  - 32
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-458-7_2
DO  - 10.2991/978-2-38476-458-7_2
ID  - Yuduo2025
ER  -