The Research On Consolidated Goodwill To The Impact Of Company's Profitability Under The Growth Enterprise Market

In recent years,the growth enterprise market as a cradle of the technology and growth companies,its inherent characteristics of innovative and high growth made merger and acquisition has become its main way to maintain high growth.The GEM companies because of its characteristic high-growth asset-light,which generate huge merger process evaluation showed that the value of consolidated goodwill and resulted in the acquisition of GEM companies high valuation phenomenon made its high premium and high risk situation.According to the 2015 disclosure of information in its consolidated balance sheet,we found that there are 493 companies in the growth enterprise market,and 322 companies disclosed consolidated goodwill,the total amount is 117.51 billion which accounted for 13.54% of total assets,each company an average of 365 million.The consolidated goodwill assets is particularly more and more important in its Assets and balance sheet.In this paper,According to the disclosure of consolidated goodwill information and Ownership Concentration data,we select the 2009-2015 GEM companies who has consolidated goodwill in its consolidated balance sheet for the sample,analysis of the relationship between consolidated goodwill and ROE to analysis consolidated goodwill its excess profit ability at the same time,we also analysised the relationship between consolidated goodwill and company operating performance in different Ownership Concentration.Through the empirical research in this paper,we found that in the Growth Enterprise merger and acquisition Market,the high premium payment of consolidated goodwill would not bring the expected good economic consequences.The conclusion shows that consolidated goodwill can improve its current operating performance,But Empirical analysis also shows that consolidated goodwill of period the M&A next phase And M&A next two phase company operating performance has a significant negative role in a long time.Through the product of the Ownership Concentration and consolidated goodwill this interaction variables studies,we found that in the high Ownership Concentration,the consolidated goodwill and the profitability of the company have a negative correlation.In the Growth Enterprise merger and acquisition Market,the high premium payment of consolidated goodwill can improve companies operating performance in the current period,But it also shows a high premium on acquisition on behind the phenomenon there are many problems.The test result shows that in the Growth Enterprise merger and acquisition Market,the consolidated goodwill recognized and measured in china's prevailing standards does not reflect the economic substance of goodwill.It has a negative effect on in those subsequent period companies operating performance.Conclusions complement and expand the study on the economic consequences of high premiun acquisitions in GEM companies market.Finally,according to the results of empirical research,this paper proposes several suggestions: Firstly,improve the market of the Consolidated Goodwill asset assessment;Secondly,The company should pay attention to risk management of the Consolidated Goodwill and develop its excess Profitability;Thirdly,Perfect the system of the disclosure and supervision of consolidated goodwill;Lastly,The check-and-balance ownership structure should be improved and the ownership listed on GEM should be decentralized.