Research On Causes And Impacts Of Goodwill Impairment Of Tianshen Entertainment

With the development of China's capital market,the increase in mergers and acquisitions in the securities market has led to the continuous expansion of the scale of goodwill.Listed companies accumulate huge amounts of goodwill impairment provisions frequently.Impairment of goodwill is included in asset impairment losses and directly affects the company's net profit and the stability of the company's financial data.In 2018,the amount of goodwill impairment in the securities market increased sharply,and it is of great significance to explore the causes of goodwill impairment.To start,this thesis introduces the situation of the impairment of goodwill in the securities market to leads the research questions,then summarizes the research status of goodwill impairment and introduces the theories related to goodwill impairment.Next,thesis introduces the company business of Zeus Entertainment and summarizes the confirmation and subsequent measurement of goodwill in its multiple mergers and acquisitions.After that,the causes of the goodwill impairment of Zeus Entertainment are specifically analyzed in this thesis,from the perspective of valuation deviation and agency issues,the internal causes of goodwill impairment are analyzed;from the perspective of goodwill subsequent measurement and earnings management,the external causes of goodwill impairment are analyzed.Then the thesis analyzed the impact of the impairment of goodwill on Zeus Entertainment in terms of the company's short-term market response,sustainability,and financial information.The following conclusions are drawn: the M&A premium is the internal cause of the impairment of Zeus Entertainment's goodwill;the failure of the performance commitment of the Zeus Entertainment subsidiary to cause the goodwill to be impaired in subsequent measurement;there is a surplus management in the provision of impairment of the goodwill of Zeus Entertainment Motivation;impairment of goodwill will cause negative reactions in the market and affect the company's ability to continue to operate.Finally,suggestions are made in light of the above conclusions: listed companies should evaluate the merger and acquisition targets prudently and objectively,and establish a long-term remuneration contract mechanism;the regulatory agency should standardize the asset evaluation firm and promote the subsequent measurement reform of goodwill.This thesis uses a case study method to analyze the causes of the huge goodwill impairment of Zeus Entertainment in 2018,and studies the impact of goodwill impairment on Zeus Entertainment,which has practical significance for listed companies and regulators to prevent abnormal impairment of goodwill.When analyzing the impact of agency problems on goodwill,this thesis combines the theories of separation of ownership and control,separation of control and cash flow rights,and demonstrates that the main shareholders of Zeus Entertainment have motives for benefit transmission;combined with pledges and impairment of large shareholders' stocks This new form of profit delivery method,analyzing its hollowing out behavior,provides a new way to prevent goodwill impairment to a certain extent.