Research On The Motivation And Consequence Of Goodwill Impairment Of Listed Companies

Under the background of frequent "thunder burst" of goodwill impairment,this paper will carry out the research on the motivation and consequences of goodwill impairment of listed companies,and explore what affects goodwill impairment,and what consequences goodwill impairment brings to enterprises and investors.This paper takes Inner Mongolia M-Grass Ecology And Environment ecology as a case.As the only listed company of ecological gardens in Inner Mongolia,Mongolian grass ecology is known as the "king".Inner Mongolia M-Grass Ecology And Environment ecology has calculated a large amount of impairment of goodwill in 2018.This paper adopts case study method and event study method to explain the main research problems.The first two papers elaborate on the research significance,research methods,theoretical basis and literature review,and the last four chapters describe and analyze cases.In the case part,the paper first describes the goodwill formed by the merger of Inner Mongolia M-Grass Ecology And Environment with two subsidiaries of Pu Tian garden and Lu Lu Xing,as well as the details of goodwill impairment in 2018.Secondly,the causes and consequences of goodwill impairment of Inner Mongolia M-Grass Ecology And Environment in 2018 are analyzed.Analysis concluded that the dynamics of grass ecology the goodwill,performance promise falls below a surplus management and subsidiary management situation is getting worse,consequences analysis focuses on two aspects of enterprises and investors,through to the enterprise financial performance analysis found that goodwill impairment of listed companies to bring the negative influence,through the analysis of short-term market reaction and the rate of return to investors find goodwill information disclosure leads to market significantly negative response in the short term,investors return decreases,at the same time increase the investment risk of investors.Through the analysis of goodwill impairment of listed companies in this paper,corresponding Suggestions are put forward from three aspects: at the policy level,relevant departments should improve the provisions on goodwill impairment,it is suggested to standardize the disclosure of goodwill information,strengthen post-supervision,revise and improve the relevant accounting standards;At the enterprise level,we should strengthen internal control and information disclosure.At the investor level,we should invest carefully and pay attention to the information reflected in the financial statements.Based on the present situation of the ecological development of grass,and analyzingthe specific issues through sum up grass covered the forming process of merger and acquisition goodwill and goodwill,and analysis the influencing factors of impairment and impairment such as a result,the improvement of the corresponding measures are proposed from various aspects,for goodwill impairment of grass ecological problems,which can be used for reference to promote the healthy development of the enterprise has important practical significance.For the enterprise as a whole,it is beneficial to guide the merger and acquisition strategic planning and specific development strategies of Mongolian grass ecology,dissolve the risk of goodwill impairment,and promote the steady development of Mongolian grass ecology.For users of internal financial statements of enterprises,the study of this paper can help decision-makers to understand the real impact of the impairment of goodwill of enterprises,make investment decisions more prudently,and avoid the operating loss caused by the impairment risk of goodwill to a certain extent.For investors,the study of this paper is helpful for investors to identify the risks in the market,and to promote investors to make rational investment and gain benefits.