This paper takes A share listed companies in China that completed major asset restructuring from 2007 to 2017 and signed performance compensation commitment agreements as research samples. Using the performance compensation commitment period as a signal to study the signal effect of performance compensation commitment on managers’ accounting choice. The study finds that the probability and amount of disclosing goodwill impairment during the performance compensation commitment period is significantly higher than that after it expires, indicating that the signal of performance compensation commitment has a positive effect on managers’ accounting choice. Further, this study examines the mechanism of signal effect of performance compensation commitment on goodwill impairment and finds that signal with external verifiability can constrain managers’ opportunistic behavior, thus influencing the managers’ accounting choice in terms of the accrual of goodwill impairment.