Research On The Causes Of The Depreciation Of Goodwill Of Listed Companies On The Growth Enterprise Market And Its Risk Prevention

In recent years,with the relaxation of relevant M&A policies and the needs of its own strategic development,many GEM(Growth Enterprise Market)listed companies have grown rapidly through mergers and acquisitions.The increasing number of M&A has brought about an increase in goodwill in the GEM market.And the proportion of net assets even exceeds the main board and small and medium-sized board.However,the inherent high-tech and light-asset nature of the GEM has led to a significant risk of impairment in its goodwill.In the M&A event in the GEM,due to the under-performance of the acquired company,the value of goodwill was significantly reduced.The phenomenon is not uncommon,which has brought a great negative impact on listed companies.Based on the relevant literature and theoretical basis of goodwill,this paper analyzes the reasons for the impairment of goodwill of listed companies on the GEM,and proposes general measures for the prevention of impairment of goodwill.On this basis,select typical cases for research.Specifically,this paper first analyzes the causes of goodwill impairment in the case from three aspects: the undervaluation of the underlying assets,the high performance commitment and the lack of sustainable profitability,and then analyzes the goodwill impairment of the case.Risk prevention measures,found that although Fuchun shares adopted a combination of shares and cash payments,signed performance commitments and compensation agreements,and set goodwill impairment measures for goodwill impairment measures,but did not target the impairment of goodwill Targeted precautions led to the loss of huge goodwill.Therefore,this paper puts forward relevant suggestions in combination with the case to further strengthen the prevention of the impairment risk of goodwill.Under the trend of increasing the risk of impairment of goodwill on listed companies,this paper tries to provide theoretical and practical reference for similar enterprises in preventing the risk of goodwill impairment through the above case analysis.