Research On The Impairment Of Goodwill Of Enterprises In The New Energy Vehicle Industry Under The Background Of Government Subsidence Decline

In 2014,China issued new policies to promote the healthy development of capital market,encouraged enterprises to carry out M & A,improved the multi-level capital market system,optimized resource allocation,and promoted economic transformation and upgrading.With the strong support of the government,enterprises have carried out M & A,and the number of M & A has increased rapidly.As of 2018,there are 2048 listed companies that have confirmed their goodwill,and the total amount of goodwill is very high,reaching 1.3 trillion yuan.Huge amount of goodwill has accounted for a large part of the company's assets,accompanied by the enterprise goodwill impairment problem is becoming more and more serious,many companies withdraw a large amount of goodwill impairment,which seriously affects the company's net profit,and some companies have serious losses.In this case,the new energy industry as a key support object of the state,the number of M & A is relatively heavy all the year round,which is high,especially in the new energy automobile industry.Many companies rely on government subsidies to confirm the high goodwill,and at the same time face the risk of high goodwill impairment.Therefore,this paper makes an in-depth study on the new energy vehicle industry,analyzes and draws a conclusion on the goodwill impairment of typical companies in the industry according to the decline of government subsidies.The research question of this paper is: is the decline of government subsidies the key factor to cause the huge goodwill impairment? In this paper,the typical case of "snake swallowing elephant" M & A in new energy automobile industry is selected as the research object.The special point is that after the M & A,the government subsidies decline,the performance suddenly drops sharply,and the total impairment is accrued at one time,which has a huge impact.By analyzing the case of goodwill impairment after the decline of government subsidies,this paper further explains the causes of goodwill impairment.This paper finds that: the decline of government subsidies is one of the key factors to promote the huge goodwill impairment of new energy vehicle enterprises.Before the decline of government subsidies,many enterprises turned to the new energy vehicle market with favorable policies.In the process of M & A,due to the large amount of government subsidies,enterprises are confident and easy to recognize high goodwill,which is specifically summarized as "high subsidies,high goodwill".However,the government subsidy policy is only the boost stone of industry progress rather than the permanent pillar,which is difficult to support the high business performance required by the virtual high goodwill.The enterprise has no core competitiveness,and its future development will face risks.Therefore,when the government subsidies decline,the high premium turns into high risk,which damagesthe interests of the company and small and medium shareholders in the form of high goodwill impairment,and finally comes to the conclusion of "high decline,high impairment".The way that government subsidy policy affects goodwill impairment can be explained as follows: M & A enterprises rely on government subsidies to recognize high goodwill.When government subsidies begin to decline,enterprises can not maintain normal operation,resulting in a sharp decline in performance,which leads to the withdrawal of huge goodwill impairment.The research significance of this paper: starting from the government subsidy policy,this paper explores the impact of government subsidy policy on the impairment of business reputation and analyzes the causes,and finds out the problems existing in the process of enterprise merger and acquisition.The research in this paper can help companies to rationally view national policies,make the right choice of M &A and make the right business strategy,so as to avoid high impairment.In addition,the study can remind investors to pay attention to the impact of government policies on corporate performance changes and goodwill impairment in order to make better investment decisions.