Research On The Effect Of High Goodwill On Performance In M&A Of Yinxi Technology

Since the establishment of the Chinese stock market,corporate mergers and acquisitions activities have been the continuous highlight of the capital market,and also the focus of the industry and academia.A large number of facts show that mergers and acquisitions between enterprises are actually a double-edged sword.If the merger is successful,the synergy effect of mergers and acquisitions will make the merger and acquisition enterprises rapidly increase the scale of the enterprise,expand the market share,and improve the competitiveness and performance of the enterprise.Failure will make both the M&A and the target companies in trouble,and even drag on the well-developed M&A companies.The lessons of success and failure in these two aspects are innumerable in our capital markets.In addition,in recent years,there is still a phenomenon in the merger and acquisition of listed companies in China,which is due to the high reputation of mergers and acquisitions and a series of problems.The performance exposed in the annual report of listed companies has dropped significantly.Many of the companies are adversely affected by the high reputation of mergers and acquisitions.The high-purchase problem arising from mergers and acquisitions is mostly concentrated on media companies or technology companies with light assets.The high-yield and high-yield problems arising from such mergers and acquisitions are analyzed in detail,not only for market supervision.And it has important meaning for investors.To this end,this paper selects the high goodwill problem of the merger of Yinhao Technology,the issue of goodwill impairment and the subsequent impact on the company as the research theme,in order to get useful inspiration.When the 2018 annual report was announced,the ever-popular goodwill made the topic of goodwill a hot spot at the end of the year.In recent years,as competition in the M&A market has intensified and M&A prices have continued to rise,the ongoing boom in mergers and acquisitions has provided good conditions for the formation of goodwill,and the high commercial reputation arising from M&A has focused on light assets.Media companies or technology companies,because of technology,or financial enterprises have high risk,high investment,high growth,high returns,so it is easy to appear the total value of the underlying net assets of the book is less than the combined price.In this situation,it is likely to promote the formation of a high premium.A detailed analysis of the high reputation of such companies due to mergers and acquisitions and the resulting problems is of great significance not only for market regulation,but also for investors.Recently,the most popular issue is Yinhao Technology,which has attracted the attention of the regulatory authorities and major media.Yinsheng Technology’s acquisition of Xingke Electronics generated 490 million goodwill at the time,and all the depreciation was less than two years after the merger,which had a great adverse impact on the company’s operations.The high-goodwill issue of Yinqiao Technology’s mergers and acquisitions,the impairment of goodwill and the impact on the company’s follow-up are selected as research topics,in order to get useful inspiration.