The Impact of Goodwill Recognition and Goodwill Impairment on the Increasing Holdings of Block Shareholders

Table 1

Variable definitions.

Variable dimension	Variable name	Proxy	Definition
Dependent variables	Whether block shareholders increase their holdings	SIV	Increased holdings in the current period, recorded as 1; without increased holdings in the current period, recorded as 0
	The changes of the increasing holdings of block shareholders	SIQ	The cumulative number of changes in holdings of block shareholders in the current period/total shares
Independent variables	Whether to recognize goodwill	GRV	Added goodwill in this period is recorded as 1; without added goodwill in this period is recorded as 0
	Degree of goodwill recognition	GRQ	The added goodwill in this period/total assets
	Degree of goodwill impairment	GIQ	Provision for goodwill impairment in the current period/total assets
Control variables	Enterprise size	ES	LN (total assets)
	Operating cash flow	OC	The net cash flow from operating activities/total shares
	Board of supervisors	BS	The number of supervisory board
	P/B ratio	PB	Current value of the closing price of the current period/(total value of owner’s equity in the end of this period/the value of paid-in capital for the end of current period)
	Long-term capital debt ratio	LCD	Total noncurrent liabilities/(total owner’s equity + total noncurrent liabilities)
	Cost and charge margin	CCM	Total profit/(operating costs + sales expenses + management expenses + financial expenses)
	Years	Year	Annual dummy variable. When the company is in the year, take 1; otherwise, take 0
	Industry	Ind	Industry dummy variables. When the company is in this very industry, take 1; otherwise, take 0