Research On The Value Relevance Of Goodwill Of Listed Companies In The Game Industry

With the development and application of Internet technology,the traditional cultural and creative industry has realized new products and formats through digital creation,the game industry has gained focus from investors.With the development of domestic capital market,merger and acquisition has become one of the important strategic choices in the process of enterprise development,and the amount of goodwill generated by merger has grown rapidly.Since 2013,game companies have set off a wave of M&A and confirmed a large amount of goodwill.However,with the tightening of national regulatory policies on the game industry,the profit space of the game market has shrunk,and some enterprises have begun to suffer from goodwill impairment.The rise of the game industry has made a considerable number of game enterprises to achieve listed financing.Currently,the research on the economic consequences of the goodwill of game enterprises is still imperfect,which needs to be further explored.The purpose of this paper is to explore the value relevance of goodwill in the game industry through studying listed companies in the game industry.Based on the research results of scholars at home and abroad,this paper combines the relevant theories of goodwill and value relevance,and takes the game industry as the starting point,selects 54 listed companies in the game industry that confirmed goodwill data from 2014 to 2018 as samples,analyzes the value relevance of goodwill of listed companies in the game industry from the absolute and relative values of goodwill,and combines the game industry with the relevant theories based on the characteristics of the industry itself and its goodwill,this paper discusses the value relevance of goodwill under different disclosure conditions,and obtains the following conclusions: First,from the perspective of absolute value of goodwill,the goodwill per share of listed companies in the game industry has no value relevance,while the goodwill per share of listed companies in the game industry with provision for goodwill impairment has positive value relevance.The information quality of game companies that only publish goodwill information is low,and investors do not use the information of goodwill per share as a reference when making decisions,the impact of goodwill per share on the stock price of game companies is not significant.The degree of disclosure of goodwill information is higher for game companies that withdraw goodwill impairment provision,the disclosure of goodwill impairment provision information can enhance the value relevance of goodwill of listed companies in the game industry.Second,from the perspective of the relative value of goodwill,the proportion of goodwill of listed companies in the game industry has negative value relevance,and the proportion of goodwill of listed companies in the game industry with provision for goodwill impairment has stronger negative value relevance.There is a certain impairment risk in the goodwill of the game industry,so the high proportion of goodwill means that the asset quality of the enterprise is relatively low,which has a negative impact on the stock return.The goodwill information quality of game enterprises with goodwill impairment provision is higher,so the impact on stock return is stronger.The conclusion of this paper enriches the research on the value relevance of goodwill of listed companies in the game industry,and provides some reference for the investment,merger and acquisition of the game industry and the formulation of goodwill related criteria.