Research On The Reasons And Risk Prevention Of Goodwill Impairment Of Listed Companies

In recent years,with the relaxation of relevant M&A policies and the need of their own strategic development,more and more listed companies grow rapidly through M&A.With the continuous increase of M&A activities,the proportion of goodwill in the total assets of enterprises is also increasing,and the inherent high-tech and asset light characteristics of most of the acquired enterprises lead to a large number of goodwill generated by M&A,which hides a great risk of impairment.After M&A,the business performance of enterprises fails to meet the expectations,and then a large amount of goodwill impairment is accrued,which has brought about a lot of problems to China’s securities market Great negative impact.Therefore,it is of great significance to study the reasons and risk prevention of goodwill impairment of listed companies.On the basis of consulting a large number of domestic and foreign literature,based on the relevant concepts of goodwill,overreaction,principal-agent and other theoretical basis,this paper adopts case study method and literature study method and combines a large number of financial data to analyze the reasons of goodwill impairment of listed companies,and puts forward targeted measures to prevent the risk of goodwill impairment.On this basis,this paper selects the typical case of Jinli Technology’s acquisition of Yuhan optoelectronics for a comprehensive study.Specifically,this paper first briefly describes the market background,basic information of both parties and the purpose of M&A,and then briefly explains the valuation and subsequent results of the M&A,and then analyzes how the high goodwill in the case is generated and the subsequent results from three aspects: the high valuation of the underlying assets,the overestimation of the merger cost and the failure of performance commitment Analysis of reasons for impairment.In view of the substantial impairment of goodwill in this case,this paper puts forward some suggestions to prevent the impairment of goodwill,such as reasonable evaluation of asset value,design of payment method,correct signing of performance commitment and enhancing the synergy effect between the two companies after M&A,so as to provide some reference opinions to relevant departments listed companies and investors in a small way,with a view to the current impairment of goodwill in listed companies Under the trend of increasing risk,it provides theoretical and practical reference for similar enterprises to prevent the risk of goodwill impairment.