Academic Journal of Business & Management, 2023, 5(24); doi: 10.25236/AJBM.2023.052410.
Wang Xingcai
School of Economics and Management, Guangxi Normal University, Guilin 541006, China
At present, the huge goodwill bubble of listed companies and the one-time provision of large goodwill impairment have become an important issue affecting the healthy development of the capital market. This paper takes Company T, a typical case of goodwill impairment in continuous mergers and acquisitions, as the research object, and systematically collates the process of continuous mergers and acquisitions of Company T and the formation and impairment process of huge amount of goodwill, and finds that its high valuation and high premium continuous mergers and acquisitions have brought about huge goodwill impairment risks. In order to effectively prevent these risks, according to the specific risk causes, this paper puts forward some risk prevention suggestions, such as carefully treating performance commitment, improving corporate governance structure, optimizing enterprise value evaluation system, and adopting the follow-up measurement method combining amortization and impairment.
Listed company T; Continuous M&A; Goodwill impairment risk
Wang Xingcai. A Study on Goodwill Impairment Risk and Prevention for Continuous Mergers and Acquisitions of Company T. Academic Journal of Business & Management (2023) Vol. 5, Issue 24: 70-76. https://doi.org/10.25236/AJBM.2023.052410.
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