What is the impact of goodwill impairment on stock price?

The influence of goodwill impairment on stock price;

Goodwill is not a strange word to many people, but few people know how goodwill is linked to capital. Recently, the impairment of goodwill has become a hot search word. What is the impact of goodwill impairment on today's stock price? The impact of goodwill impairment on the company's share price can be divided into two different situations: if the company's performance is not ideal, goodwill impairment will have a negative impact on the listed company's share price; If the company is listed in order to improve its earnings per share, it is a good thing that the share price of listed companies deliberately devalues goodwill. The impairment of goodwill is generally caused by the profit-seeking of listed companies. They want to seize the hot spots in the market, then speculate, raise the stock price and buy other enterprises at high prices, which leads to the expansion of goodwill. But the final result is that the company's promise has not been fulfilled, and the acquired assets have not performed well. It can be said that the impairment of goodwill usually means the decline of the performance of listed companies, and there may be profit losses. Once the performance of these listed companies declines and turns losses into profits, their stock prices will fall, so many investors will take the impairment of the goodwill of listed companies as a sign of future stock price decline.

The accrual of goodwill will lead to the decline of the company's profit to a certain extent, and once it is accrued, it will often lead to the reduction of the company's book profit. Impairment of goodwill will not only reduce the assets of listed companies, but also reduce the original net profit, thus dragging down the current performance of listed companies. Impairment of goodwill will lead to the continuous downturn of listed companies' share prices. In addition, the greater the proportion of goodwill in the net profit returned to the mother, the greater the risk of performance loss caused by goodwill impairment.