Research On The Factors And Consequences Of Goodwill Impairment Risk Of Listed Companies In Pharmaceutical Industry

At the beginning of 2019,many listed companies in China's A-share market accrued large amounts of goodwill impairment,which seriously damaged investors' confidence and disrupted the order of the capital market.There is a huge potential threat to the company's future financial situation and market evaluation.The risk of goodwill impairment in the merger and reorganization of listed companies has become an urgent problem to be solved.As the development of the pharmaceutical industry has stabilized,M & A activities in the industry have become more frequent.Pharmaceutical companies have the typical "asset-light" characteristics and high valuations.Therefore,M & A activities are characterized by a "high premium",resulting in high book goodwill and high risk of impairment of goodwill.In 2018,the goodwill of listed companies in the pharmaceutical industry in China exceeded 10 billion yuan.The huge amount of goodwill impairment has caused widespread concern in the market.This raises the core issue of this article: the research on the causes and consequences of the goodwill impairment risk of the pharmaceutical industry.First of all,on the basis of literature review of goodwill,goodwill confirmation,goodwill impairment and goodwill impairment risk,the theoretical basis of this article is summarized.Secondly,the statistical analysis method is used to analyze the overall situation of the goodwill impairment of listed companies in China's pharmaceutical industry,and it is concluded that a few companies in the industry are facing great goodwill impairment risks.Again,this article uses case studies to select Renfu Pharmaceutical,which has a greater risk of goodwill impairment in the industry,as the case study object for case analysis:(1)Analysis of the causes of goodwill impairment risks: The causes of goodwill impairment risks are mainly the high book goodwill and the various items that cause impairment;(2)Impact analysis of goodwill impairment risk: The impact of goodwill impairment risk is divided into financial risk and market risk.Specifically,the risk of performance uncertainty,the risk of deterioration of financial indicators and the risk of stock price fluctuations have brought adverse effects on the future development of enterprises.Finally,the conclusion of this paper is drawn,and at the same time,how to prevent the goodwill impairment risk of listed companies is put forward from the level of listed companies,the level of regulators and the level of investors.The innovation of this article lies in: One is to use statistical methods to analyze the overall status of the goodwill impairment of listed companies in China's pharmaceutical industry,and analyze the risk of goodwill impairment faced by them.The second is to analyze the impairment of goodwill in the pharmaceutical industry from the perspective of risk,and analyze the causes and impact of goodwill impairment through case analysis in a small way.It also provides preventive measures and suggestions on the risk of impairment of goodwill in the merger and acquisition of listed companies in the pharmaceutical industry.