Analysis On The Causes And Countermeasures Of Goodwill Impairment Of Listed Company

In recent years,a wave of mergers and acquisitions in the domestic market has not taken off yet.With the increasing number and scale of mergers and acquisitions,the consequent goodwill impairments and its risks have gradually appeared,which have caused a great impact on the stock market in China.One-off provision for a large number of goodwill,especially a lot of listed companies to its current performance bring great fluctuation,caused a strong hit on Chinese stock market.Based on this background,this paper analyzes a typical case of J&r Optimum Energy goodwill impairment,explores whether huge goodwill problems,reasons,and measurements are reasonable further.This paper mainly adopts methods of literature research,case study and comparative analysis.Firstly,this paper analyzes the nature of goodwill,the causes of goodwill impairment and the measurement of goodwill through literature research.Secondly,by using the case study,this paper analyzes the case of J&r Optimum Energy from the goodwill generated to the impairment of full goodwill,revealing the negative impact of goodwill impairment would lead to the declining enterprise financial performance,the stock price fluctuation and even collapsing,and the accurate reduction of major shareholders,founding that J&r Optimum Energy had various unreasonable behaviors from the formation of goodwill to the goodwill measurement,analyzing that the reasons for goodwill impairment were the high initial mergers and acquisitions premium,the performance commitment failing and the earnings management motivation of J&r Optimum Energy.This paper also compares the advantages and disadvantages of the two methods of goodwill impairment and goodwill amortization through comparative analysis.Finally,summarizing on the basis of above analysis,and give the corresponding suggestions that evaluating the assets and calculate goodwill reasonably,controlling of high performance commitment strictly and improving goodwill measurement,aiming to provide a theoretical and case basis for our regulatory authorities to make decisions on follow-up policies and regulations,so that our listed enterprises can publish relevant information more objectively,further protect the rights and interests of shareholders,and keep the steady growth of China's economy environment.