A Study On The Goodwill Impairment Of Horizon Shares Premium Merger And Acquisition Of Xintai Materials

China’s economy has developed rapidly in recent years,and enterprises have reached the key point of transformation and upgrading.The number of enterprises that use mergers and acquisitions to expand their business scale has continued to grow.Most of the mergers and acquisitions of Chinese enterprises are premium mergers and acquisitions,which have accumulated goodwill in the market.Goodwill,as part of corporate assets,will expand the scale of corporate assets,accelerate corporate development,and achieve synergy in the short term.In fact,the goodwill generated by premium mergers and acquisitions is not a profit for some companies.Changes in the capital market may have a huge impact on the operating conditions of the merged companies,resulting in performance that is much lower than the expectations of the mergers and acquisitions,triggering a large Impairment of goodwill.This article studies the issue of goodwill impairment caused by the M & A premium from the root.First,a basic introduction to domestic and foreign literature and related theories.Secondly,the case of Horizon’s merger and acquisition of Xintai Materials is selected as the research object for analysis.Its typical characteristic is that its premium level is at the highest annual level in the industry.By introducing the background of M &A,the process of M & A and the impairment of goodwill of Horizon shares,the question is raised: What are the main factors that cause a huge amount of goodwill impairment due to premium M & A? Once again,the main reasons for Horizon’s premium acquisition of Xintai Materials are discussed.From three perspectives,the drivers of Skyworth ’s highpayout mergers and acquisitions are analyzed.Finally,focus on the influencing factors of premium M & A on the impairment of goodwill,and carry out a key analysis on the negative impact of goodwill impairment on Horizon shares,and clarify the origin and harm of goodwill impairment from the roots.After analysis,it was concluded that the goodwill brought by the management’s blind premium mergers and acquisitions has moisture,which increases the assets of the company,the true profitability of the target of the merger and acquisition is difficult to achieve performance commitments,and the high premium is converted into a huge amount of goodwill impairment.Impairment will further lower the performance level of mergers and acquisitions,causing losses to the majority of investors,which is not conducive to the smooth operation of the market.Finally,suggestions are made from four perspectives.In the early stage of the merger,by improving the disclosure of the information of both parties,the management of the enterprise is avoided to make irrational merger and acquisition decisions,and the merger and acquisition transaction is further cautiously carried out during the merger and acquisition to avoid the business caused by the high premium acquisition.Reputation impairment.In the follow-up measurement of goodwill,it is of great significance to improve the quality of accounting information by improving the transparency and reliability of goodwill impairment information to protect the rights of small and medium investors.