Analysis Of The Reasons For Goodwill Impairment Of Listed Companies In My Country And Countermeasures

In recent years,China's capital market has been constantly improved.Driven by the market and policies,listed companies are increasingly active in mergers and acquisitions.Both the scale of mergers and acquisitions and the amount of transactions are growing rapidly.The most common of these problems is the recognition of large amounts of goodwill.The huge amount of goodwill has both advantages and disadvantages.If the enterprise can make a good prognosis for m&a,it may generate higher economic benefits in the future through the synergies generated by the m&a activity.Conversely,there is a risk of impairment of high goodwill.Throughout the capital market in recent years,there are many listed companies that cannot fulfill their performance promises due to their poor business performance.In the performance commitment period,listed companies that fail to meet the promised performance indicators have to charge goodwill impairment,which tends to cause fluctuations in the performance of the company in the capital market,resulting in improper allocation of resources,and reduce the efficiency of the capital market.Therefore,how to avoid a large amount of one-time impairment of goodwill of listed companies has become an urgent problem to be studiedUnder this background,this paper adopts the case study method and takes Shanghai electric drive company as an example to study the cause of goodwill impairment of listed companies in China,and give more suggestions and countermeasures.Concrete based on the current capital market in our country,analyzing the present situation and problems of m&a goodwill impairment and formed then study the ocean of Shanghai electric motor m&a merger and its goodwill process,at the same time,when there is a huge risk of goodwill to the enterprise characteristics and explore the goodwill reasons,and puts forward countermeasures for the cause of the enterprise goodwill,reduce the risk of goodwill to the enterprise brought.It is found that the impairment of goodwill of enterprises is often due to the lack of accurate self-evaluation before merger and acquisition,the merger and acquisition strategy is too aggressive,and the lack of effective resource integration and management after merger and acquisition.Therefore,different countermeasures should be taken to avoid goodwill impairment in different stages of m&a.Make a comprehensive and accurate assessment of yourself before the merger,formulate a reasonable merger strategy and strengthen the follow-up management after the merger to avoid goodwill impairment.This paper is intended to provide effective solutions for enterprises to prevent and reduce the risk of goodwill impairment and to avoid the adverse impact of goodwill impairment on enterprise value.