Research On Goodwill And Impairment Of Corporate Mergers And Acquisitions

With the rise of the Mobile Internet,smartphones are constantly updated,and mobile games have gained the great opportunity of rapid development.In order to expand the scale and occupy the market,mergers and acquisitions between game enterprises are becoming more frequent.Under the market boom,the premium rate of mergers and acquisitions between enterprises continues to rise,goodwill assets brought about by mergers and acquisitions activities are also expanding rapidly.in 2017,there were a large number of enterprises to take up the goodwill asset impairments,and much more enterprises did that in 2018,which indicates goodwill-related risks are very high.In this context,this thesis selects the case of continuous merger and acquisition of OurPalm Technology,comprehensively uses the case study method,the literature research method and the event research method.This thesis mainly focuses on analyzing the formation process of huge goodwill assets,the problems that exist after the merger and acquisition,as well as the consequences of the provision for goodwill impairment.On the basis of the above analysis,the corresponding countermeasures are given in the three aspects,and the conclusion of this thesis is summarized,and the enlightenment for other mergers and acquisitions,asset appraisal institutions and investors is put forward.Through the case study,this thesis not only provides suggestions for the future merger-related activities of OurPalm Technology,but also refines the relevant enlightenment for other subjects,which is conducive to these subjects to play their respective roles better in the merger and acquisition activities.The conclusions of this thesis include:Under the influence of merger opportunity,valuation method,payment method and other factors,the phenomenon of high premium merger may appear,which leads to the high initial recognition of goodwill assets;there are also various reasons for enterprises to withdraw goodwill impairment provision,including corporate governance factors,business management factors and earnings management motivation;withdrawing large amount of goodwill impairment will lead to the rapid deterioration of the company's financial performance and capital market performance.The innovative ideas of this thesis include:using logical analysis and literature study to find the impact factors of goodwill impairment,and proposing that large goodwill impairment is the result of the combined influence of multiple factors both inside and outside the company;this thesis links corporate governance with goodwill,and holds that corporate governance factors will affect the impairment of goodwill.The structure of this thesis goes as follows:Part ?:Introduction,mainly introduces the background and significance of this study,the content and methods of this study,as well as the research ideas,innovations and shortcomings.Part ?:Literature review,first of all,it reviews and analyzes the essence of goodwill.On this basis,it reviews the relevant research results from three perspectives:the influencing factors of M&A goodwill,the influencing factors of goodwill impairment,and the economic consequences of goodwill impairment.And this part is finished with a literature review.Part ?:A review of continuous mergers and acquisitions by OurPalm Technology,including company and industry profiles,details of serial mergers and acquisitions,namely the formation of goodwill,and post-merger performance,including operating performance and stock market performance.Part ?:Analysis of goodwill-related issues related to mergers and acquisitions,including analysis of factors that leads to excessive goodwill of mergers and acquisitions,factors of large goodwill impairment,and negative consequences of goodwill impairment.Part ?:Countermeasures for goodwill-related issues.The corresponding solutions targeted to the three problems analyzed in the previous part are put forward here.Part ?:Conclusions and revelations,review and summarize the contents of case analysis,and put forward the conclusions of this thesis.At the same time,according to the content of the case study,the enlightenment of the OurPalm Technology case to other mergers and acquisitions,asset appraisal institutions and investors are given.