Research On Risk Prevention Of Goodwill Impairment Of Fenda Technology

In the context of rapid global economic development,companies are choosing M&A and restructuring in order to rapidly expand and seize the golden period of high-quality economic development,in order to promote the growth of their economic strength and the transformation and upgrading of their industrial structure,however,the price of M&A affects the effect of M&A to a certain extent.In the wave of M&A restructuring,many companies are very optimistic about the development prospects of the subject company and the effect of M&A integration,and usually overestimate the future value of the subject company to the extent that they make high premium M&A decisions,and the high amount of goodwill brought about by high premium M&A will increase the risk of goodwill impairment in the future.In recent years,the A-share market has experienced frequent "goodwill" incidents,which have infringed on the interests of small and medium-sized investors and are not conducive to the orderly development of the capital market.High goodwill impairment has become a hot topic in the capital market and has received a great deal of attention in academic circles.This paper takes the typical case of Fenda Technology’s merger and acquisition of Fuchengda Technology in the wave of goodwill impairment as the research object,based on information asymmetry theory,signaling theory,synergy theory and negative hypothesis theory,uses case study method,comparative analysis method and event study method,analyzes the sources of high goodwill impairment risk of Fenda Technology from multiple perspectives,including high amount of goodwill,imperfect design of performance commitment,inadequate management of M&A integration and management’s surplus management motivation.The study analyzed the sources of the high goodwill impairment risk of Endeavor Technology from multiple perspectives,including high goodwill,poorly designed performance commitments,inadequate management of M&A integration and management’s surplus management motives.Goodwill impairment risk is an important source of goodwill impairment risk.Based on this,we propose recommendations to prevent goodwill impairment risk,such as determining a reasonable M&A price,improving the performance commitment system,strengthening the management of M&A integration and regulating surplus management practices,with the aim of protecting the interests of investors,promoting the healthy and sustainable development of enterprises,and thereby promoting the orderly development of the capital It aims to protect the interests of investors,promote healthy and sustainable development of enterprises,and thereby facilitate the orderly development of the capital market.