Research On Risk Prevention Of Goodwill Devaluation Of Listed Companies

With the limited growth of enterprises in their own traditional fields,mergers and acquisitions have become effective means for enterprises to seek further development.In recent years,with the support of policies,companies have opened the way of mergers and acquisitions in line with their own development needs,and set off a wave of mergers and acquisitions.Although mergers and acquisitions can bring companies the opportunity to break through the development bottleneck,the huge amount of goodwill formed with the increase in mergers and acquisitions will increase the risk of goodwill impairment.In 2018,the amount of goodwill impairment in my country’s A-share market was as high as 167.368 billion yuan,and a total of 887 listed companies withdrew goodwill impairment.The huge impairment of goodwill had a great negative impact on the company and the entire market.Therefore,it is of great significance to study the risk prevention of goodwill impairment of listed companies.Based on the 2018 A-share market goodwill impairment event,this article analyzes Jiuqi’s software goodwill impairment risk and its causes,so as to make recommendations for listed companies’ goodwill impairment risk prevention.First,a brief introduction to the current status of goodwill and impairment of goodwill in the mergers and acquisitions of listed companies in my country;secondly,through combing the mergers and acquisitions of Jiuqi Software from 2014 to 2018,sorting out the formation and impairment of the company’s goodwill,and combining Jiuqi The asset appraisal report,business performance report and other related announcements released by the software launched an analysis of risks and their causes.The risk analysis after impairment of goodwill is carried out from the following two aspects: On the one hand,based on the analysis of financial indicators,it is concluded that Jiuqi Software’s goodwill impairment event has increased the financial risk of the enterprise;on the other hand,the goodwill of Jiuqi Software The short-term market reaction before and after the impairment event is analyzed,and combined with the large-scale impairment event that occurred in the A-share market in 2018,it is concluded that the occurrence of goodwill impairment is likely to increase market volatility risks.The causes of goodwill impairment risk are mainly concentrated in the following three aspects: the target company’s appraised value is falsely high;the target company’s operating conditions are not as expected;there is a motive for earnings management.Based on the above situation,we further deduce the goodwill impairment risk of my country’s listed companies and its causes,and put forward corresponding suggestions from the company itself,the standard level and the regulatory level,in order to provide reference value for my country’s listed companies to prevent the goodwill impairment risk.