A Study On The Management Of BY-HEALTH’S Public Opinion Risk

The role of Chinese capital market in the economic system is being challenged by the storm of goodwill impairment.The goodwill of A-share market sharply increased in 2008 and 2014,and then reached its highest level in 2018.In 2017,a lot of huge goodwill impairment appeared which caused lots of investor losses.As a result,a large amount of negative public opinion was generated.Investor scepticism has heightened the risk of a collapse in the share prices of listed companies.Few studies have focused on how to deal with the risks posed by such negative public opinion.This paper took BY-HEALTH as research object.As one of the leading enterprises in China’s dietary supplement industry,BY-HEALTH is a famous public company in the growth enterprise market of China.In2019,this company suffered its first loss in ten years since its IPO,mainly due to the provision of 1.009 billion goodwill impairment.The research on this company,including the causes of its goodwill impairment and its way to deal with public opinion will be very meaningful.This paper discussed how to deal with public opinion risk and maintain the stock price of the company which had high goodwill or goodwill impairment.This paper mainly used literature research methods and case study methods.First of all,in the preparatory process of writing this paper,a large number of documents are collected and sorted out.These documents are mainly collected through the China National Knowledge Infrastructure database,Baidu academic database and library.This paper mainly refereed to literatures in the past five years.The theory and the framework of this paper was based on those literatures which were widely read and quoted.Secondly,this paper focuses on the case study of BY-HEALTH’s purchasing of LSG,a probiotic manufacturer in Australia.The data is got from the website of CSRC,Wind database,Wisesearch database,People’s Daily Online database and other database,including enterprise announcements,financial statements,research reports,industry related data and media reports.This paper summarized the cases and analyzes the related theories of Public opinion risk management.The results showed that: First,the goodwill impairment brought public opinion risk on BY-HEALTH.the attention of public investors has greatly increased.Some negative public opinion may damage Tomson Baker’s image of the capital market.Second,according to the public opinion monitoring data and evaluation indicators,the public opinion risk of BY-HEALTH was not as higher as expected and has not caused the company’s stock price to collapse;Third,the online public opinion is stronger than the traditional public opinion,which mainly come from newspapers and magazines.However,the traditional media and the new media form of traditional media are the core content production sources,which determine the intensity and sustainability of public opinion;Fourth,the topic of capital market is highly professional and obviously affected by market sentiment;Fifthly,the public opinion risk of goodwill impairment was pulse type,the fade of current public opinion didn’t mean that it will not be repeated in the future.The next out breaking of public opinion may have a stronger impact.The management measures of BY-HEALTH are implemented in a targeted manner based on the risk assessment results and the public opinion characteristics of the subject matter.Its core is timely information disclosure and investor communication..