Research On Changchuan Technology Acquisition Changxin Investment Goodwill Impairment Risk

In recent years,as a representative of the semiconductor industry in the information age,the design and manufacturing of key components,chips and integrated circuits rely heavily on imports,and become the weak links in the upgrading and development of our information technology industry.With the further deepening of reform,more and more semiconductor enterprises strengthen resource integration through merger and reorganization,in order to achieve rapid development and enhance competitiveness.Since 2016,the number of mergers and acquisitions has risen rapidly,and so has the paper goodwill of the semiconductor industry.However,in recent years,the phenomenon of large goodwill boom and performance change has brought huge impact to the capital market,and the risk of goodwill impairment has attracted more and more attention.Taking Changchuan Technology as the specific research object,this paper adopts literature research method,case analysis method and analytic hierarchy process to combine theories with practical cases to study the risk of goodwill impairment of Changxin investment in Changchuan Technology’s merger and acquisition,and draws the following conclusions:First,the shareholder’s equity valuation of Changchuan Technology on Changxin Investment is RMB 54,480.27,with a value added rate of 9.6%,forming a goodwill of RMB 27,4537,900 on the book,and recognizing a goodwill impairment loss of RMB 19,092,200 in 2019.Therefore,based on the information asymmetry theory,earnings management theory and synergy theory,this paper identifies and analyzes the risk of goodwill impairment of Changxin investment in Changchuan Technology’s merger.The risks before the merger include the environmental risk of disruptive technology,the risk of policy uncertainty and the risk of not meeting the expected effect of the merger.The risks in M&A include the risk of overvaluation,the risk of lack of accurate goodwill information disclosure and the risk of performance commitment not reaching the agreed amount;The risks after merger include the risk of personnel,finance and resources cannot be integrated,the risk of mismatch of internal control ability and the risk of customer loss.Secondly,specific countermeasures should be proposed according to the risks in the above different stages.Before M&A,changes of external environment,dynamic changes of identifying policies should be considered and M&A decisions should be made prudently.In M&A,we should reasonably determine the valuation of the target,improve the disclosure of goodwill information and reasonably treat the performance commitment.After the merger and acquisition,we should pay attention to the integration of personnel,finance and resources,improve the internal control system and expand the product market.This paper summarizes the prevention and control experience of enterprise goodwill impairment risk from typical cases,which can help semiconductor enterprises predict the goodwill impairment risk they may face before merger and acquisition,so as to reduce the risk of large amount of enterprise goodwill impairment and improve the reliability and effectiveness of enterprise financial information.This has certain theoretical value and practical significance for expanding the research on goodwill impairment of domestic semiconductor companies.