Listed Companies Use Goodwill Impairment For Earnings Management Research

Listed companies often promote their own development through M&A of enterprises with high performance and good reputation.However,because some enterprises fail to achieve the high performance commitment before the M&A,the assets of listed companies are inflated and the goodwill of listed companies is piled up.In recent years,when enterprises use the behavior of withdrawing large amount of goodwill impairment in earnings management,the problem of enterprise performance decline is significant.This paper focuses on the impact of goodwill impairment in earnings management on enterprises,analyzes the specific reasons,and finds the corresponding countermeasures.In this paper,Alpha entertainment as a research case,using literature research,case analysis and comparative analysis to analyze the causes and impact of Alpha entertainment goodwill.The significance of this paper is to study the issue of using goodwill impairment for earnings management,improve the relevant accounting theory of goodwill impairment,and promote the managers to make correct decisions and use goodwill impairment for earnings management,which will play a positive role in the development of China’s capital market.Firstly,the paper reviews and sorts out the problems of goodwill impairment and earnings management,summarizes and summarizes the relevant theories;secondly,it takes Alpha entertainment as a research case,analyzes the reasons for its high goodwill,which are the characteristics of high goodwill accumulation in film and television animation and game industry,high performance commitment driven M&A and unreasonable M&a valuation and pricing.This paper studies the changes of the total revenue,profit,total assets and other financial indicators of Alpha entertainment after the impairment of goodwill,analyzes the abnormal impact of the impairment of goodwill on the income status,the abnormal impact of the impairment of goodwill on the relevant financial indicators and the abnormal impact of the impairment of goodwill on the market value of enterprises,and then proposes the adverse economy generated by Alpha Entertainment’s earnings management by using the impairment of goodwill The results are mainly shown as the rise of the debt paying pressure,the huge loss of the enterprise and the fall of the stock price.Finally,according to the above research,it is concluded that the use of goodwill impairment for earnings management is hidden,the main distinguishing features of goodwill impairment for earnings management are summarized,and the adverse economic consequences of goodwill impairment for earnings management are also summarized.Then five suggestions are put forward:rational merger and acquisition to avoid high goodwill accumulation;enhancing industry sensitivity to control the development direction of enterprises in time;improving the follow-up measurement criteria of goodwill,tightening the space for violations;enhancing the independence of evaluation institutions,increasing the penalties for violations;establishing an effective corporate governance structure and improving the internal control system.The innovation of this paper is to focus on real cases by using comparative analysis,analyze the problems and impacts of using goodwill impairment for earnings management,analyze the causes and propose solutions.