Research On The Merger Goodwill Of GEM Listed Companies

Since 2014,thanks to the improvement of the capital market and the introduction of favorable national policies,China's M & A market has become increasingly active,and the transaction volume and volume have been increasing year by year.M & A and reorganization have become an important way for many companies to expand their scale and upgrade their industries.Due to the limitation of its own scale,the listed companies on GEM are very difficult to achieve leapfrog development through endogenous forces.In order to prevent being eliminated by the market,the desire for mergers and acquisitions is stronger,and the market once ushered in prosperity.However,with the blowout growth of mergers and acquisitions,many high-premium cases have emerged,and the result is a large accumulation of goodwill,which has expanded dramatically.At present,the number of companies whose business performance has declined due to the explosion of goodwill is becoming an important cause of turbulence in China's capital market.The risk of impairment of goodwill cannot be overstated.Therefore,how to reduce the formation of goodwill and properly handle the impairment of goodwill in the future is something that many companies need to pay attention to,and it has certain research significance.Under this research background,based on the collation and summarization of the literature on goodwill impairment,and combing the accounting standards related to China's goodwill,this paper first analyzes the scale development of China's GEM goodwill and the impairment of goodwill.The current situation,after having a certain understanding of the overall market,the introduction of a typical case of Fuchun shares merger Shanghai Junmeng.Analyze the reasons for the impairment of the combined goodwill from the four perspectives of the valuation of the target company's assets,the design of performance commitments,the sustainable profitability of the acquiree after the merger and acquisition,and the motivation of earnings management,while taking the precautionary measures taken by Fuchun Co.Validity analysis is performed.Although the prevention of the impairment of the goodwill of Fuchun Co.,Ltd.fails,by summing up its desirable experience and deficiencies,combined with the characteristics of GEM listed companies,it is possible to propose universal precautionary measures with a view to passing The study of typical cases gives some practical implications to the management and market investors of the enterprise,and finally points out the shortcomings of this article and puts forward the outlook.This article hopes that the issue of the merger and acquisition of goodwill of GEM listed companies will be highlighted day and night,and will provide reference experience for other GEM companies' M & A practice and relevant department policy development.