A Study On The Risk Of Goodwill Impairment Of Listed Companies And Its Prevention

With the continuous promotion of reform and opening up and the continuous development of the capital market,the survival and development of enterprises have been changing.In the environment of "new normal","three-phase superposition" and "supply-side reform",more and more companies choose mergers and acquisitions to enable them to rapidly expand their business,optimize their industrial structure and successfully complete the transformation and upgrading of enterprises.However,behind this wave of mergers and acquisitions is a huge amount of goodwill and its impairment risk.Listed companies and even the whole market now have to face the risks brought by outsourcing goodwill.Goodwill has become one of the most important problems in today's capital market.It has laid a great hidden danger to the normal market order and the future operation of listed companies.This paper takes the huge goodwill formed through the acquisition of Shanghai Fuyu by Baoding technology co.,Ltd.as the case study object,analyzes the essence of goodwill,the influencing factors of goodwill formation,the influencing factors and motivation of goodwill impairment,the risk and prevention of goodwill impairment,and analyzes the reasons for the goodwill impairment of Baoding technology co.,Ltd.from the perspectives of due diligence,executive overconfidence,gambling agreement,information asymmetry,collaborative management and external environment.In this paper,it is found that Baoding Technology has signed an unreasonable gambling agreement and seriously overestimated the value of Shanghai Fuyu because of insufficient due diligence,overconfidence of executives and information asymmetry between the two sides of the merger and acquisition in the process of M & A,resulting in a large number of superficial goodwill,which seriously deviates from its economic essence.Baoding Technology therefore faces the risk of huge impairment of goodwill and loss of economic benefits.Based on the analysis of goodwill impairment risk of Baoding Technology,this paper puts forward the corresponding preventive measures against the root causes of goodwill impairment risk.This paper holds that enterprises should avoid superficial goodwill through detailed due diligence,reasonable valuation and rational executive decision-making,and set up goodwill impairment tolerance index to reasonably value the target enterprises,sign a reasonable gambling agreement and adopt step-by-step acquisitions to make goodwill as reasonable as possible,so as to reduce the risk of goodwill impairment.At the same time,this paper suggests that external regulators should strengthen the supervision of goodwill confirmation measurement and goodwill impairment information disclosure of listed companies,and suggest that the measurement of goodwill should be improved to help enterprises and even the whole capital market to prevent the risk of goodwill impairment.