A Study On The Goodwill And Goodwill Impairment Of Listed Companies Based On Performance Commitment

In recent years,under the support of national policies,the transactions of mergers and acquisitions(M & A)are increasing gradually.The development of an enterprise needs to have certain competitive advantages,reasonable resource allocation,relatively stable market,the overall strategy of sustainable development and many other elements.Some listed companies are faced with many problems in the process of development,such as market instability,lack of development potential,broken capital chain,weak competitiveness of companies and so on.In particular,the core competitiveness plays an important role in the company and it also can bother the management,so the management or decision makers of listed companies choose mergers and acquisitions under the fierce market competition.However,the high premium of M & A will form a huge amount of goodwill in the transaction reorganization,and then the goodwill impairment will come up after M& A.Some listed companies blindly sign performance commitment agreements to avoid the risk of M & A without fully understanding the relevant information of the acquired company.However,high premium and overvaluation lead to the confirmation of huge goodwill of listed companies,and the subsequent goodwill impairment not only damages the company and the majority of investment.The company may even face the pressure of bankruptcy.This paper aims to find out the direct causes of goodwill impairment of listed companies.After knowing about the causes,risk of goodwill impairment on business performance can be avoided to a degree.First of all,through the case study of Lian Jian optoelectronics' s acquisition of time-sharing media,this paper finds out the behavioral motivation of both companies in the merger transaction,and then it analyzes economic consequences of performance commitment on the recognition.After that,it analyzes the influence on the impairment of merger goodwill of performance commitment from some aspects,such as formulation of performance commitment,internal and external influencing factors and so on.Finally,this paper summarizes the relationship between performance commitment and impairment of merger goodwill in M&A transactions,and puts forward advice from three aspects,and there are performance commitment,goodwill recognition and goodwill impairment.The advice aims to maintain a good development environment of the capital market and contribute to it.