Mergers and acquisitions help enterprises develop with high quality. Existing research holds a positive attitude on whether the integration of industry and finance can help enterprises to rationally acquire and inhibit excess goodwill, but ignores the possible negative impact. Based on the data of A-share listed companies from 2007 to 2021, this paper empirically tests the relationship between bank-enterprise integration of industry and finance and excess goodwill. The results show that there is a U-shaped relationship between bank-enterprise integration of industry and finance and excess goodwill. Market competition strengthens the U-shaped relationship between bank-enterprise integration of industry and finance and excess goodwill. Analysts' attention weakens the U-shaped relationship between bank-enterprise integration of industry and finance and excess goodwill. Based on information asymmetry and principarity-agent theory, this paper explains the non-linear relationship between bank-enterprise IFI and excess goodwill, as well as the moderating effect of market competition and analyst attention. Further research finds that the impact of firm size, ownership nature and corporate governance on bank-enterprise integration of industry and finance and excess goodwill is heterogeneous, which helps to deeply understand the positive and negative effects of the integration of industry and finance, and provides decision-making reference for financial capital to better serve the real economy and help enterprises develop with high quality.

Jibo Zhang. Bank-enterprise association industry-finance integration and excess goodwill-- Moderating effect of market competition and analysts' attention. International Journal of Social Sciences and Economic Management (2024), Vol. 5, Issue 3: 71-100. https://doi.org/10.38007/IJSSEM.2024.050309.

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