Research On Value Evaluation Method Of Film And TV Industry Company In China

With polices or regulations related of cultural industryissued, the motion picture and televisionindustries are experiencing a relatively prosperous time of development, when the economic activities among enterprises in this field, such as reorganization and integration, mergers and acquisitions, IPO financing, emerge with a lager frequency and efficiency than ever. Based on this observation, both theorists and valuers on business valuationfor film and television companieshave begun to focus on the rationality and objectivity of valuation result.Compared with industrial companies,film and television companiesare classified into culture industry.And the significant differences between them are that thelatteris equipped with less physical assets and more intangible assets, which means film and television companies havethe characteristics of unique profit mode, and high risk meanwhile high growthpotential, especially management flexibility.In consideration of the excellent applicability of real option theory in valuation for management flexibility problems, this paper is trying to introduce it into business valuation for film and television companies.First of all, based on the information disclosure and observation of business valuation report for film and television companies, this paper firstly deeply analyze the status of business valuation on them. Then, it starts to research on the unique characteristics and profit model of this specific industry, in the meantime this paper will illustrate the applicability of traditional business valuation method on film and television companies. After that, in the light of the unique characteristics and profit model, it is going to introduce and establish a new method DCF-option pricing model to do this specific business valuation. Eventually, in the hope of providing new ideas for film and television companies valuation and improving the traditional business valuation method, an empirical analysis on the DCF-option pricing method would be employed to verify the rationality of this model.