| With the maturity of our capital market and the merger and acquisition market,the adjustment of our industrial structure and the decentralization of regulation in China have achieved strong growth in our country,and many enterprises have adjusted their industrial structure,changed their size,thus promoting their rapid growth and development.In 2015,the number and scale of the market transactions in China’s merger and acquisition market reached a record high,while the problem of merger and acquisition restructuring also followed most typically,the large reputation of listed companies,which has two dimensions,can bring intangible assets to the enterprise,magnify the synergies of mergers and acquisitions,and bring high returns to the enterprise,but on the other hand may expose the enterprise to the risk of a loss of goodwill,affecting not only the business performance but also the investor over the years,the capital market has been frequently experiencing a huge amount of goodwill impairment,which shows that the risk of goodwill impairment has become a very important issue in capital market.The paper first compiles the research literature of the goodwill,and expounds the basic theory of goodwill and the relevant guidelines of our country.The paper discusses the case analysis of the merger and acquisition of the river,and compares the merger and acquisition motive and the results of the acquisition,and analyzes the comparison method of the financial index,and mainly investigates the formation of goodwill and the reasons of goodwill impairment,and further explores the economic consequences of goodwill impairment for enterprises and small and medium investors.The main causes of the goodwill impairment include;the decline in profitability of M&A companies;the drain of brain in the core of M&A companies;the high recognition of initial goodwill.Studies suggest that high goodwill doesnot mean high yields,and that impairment of goodwill may hurt businesses and small and medium investors.Therefore,in the light of this paper,the relevant recommendations are made: regulating the initial recognition of goodwill and rationalize the original goodwill;strengthening the supervision of performance commitments;improving the follow-up measurement of goodwill;enhancing the disclosure of goodwill;strengthening the regulation of business;and strengthening the oversight of the evaluation agencies. |
