Research On The Risk Of Goodwill Impairment And Prevention Of Assets Merger And Acquisition

In the context of the current economic structure accelerating transformation and the rapid development of science and technology,industry saturation and overcapacity have become important issues that affect the sustainable development of many industries,and mergers and acquisitions have become an effective way for A-share market companies to expand their scale and improve competitiveness to avoid market elimination way.With the introduction of various new policies supporting M&A and reorganization since 2014,the wave of M&A and reorganization in the Chinese market has erupted,and the amount of goodwill formed has increased year after year,and the problem of goodwill impairment has become apparent,especially in software services,pharmaceutical manufacturing,and media industry.Asset-light companies usually rely on their intangible assets such as R&D,brand value,or technology management to obtain returns for their development.Their high value-added and low capital occupation industry characteristics have led more and more listed companies to repurchase through acquisitions and mergers allocation of resources,M&A activities of asset-light companies in the capital market are endless.At the time of mergers and acquisitions,small investments are used to obtain higher value,and due to the fact that the industry's performance commitment is relatively high,the property of light asset companies has led to a high reputation for light asset industry accumulation in the capital market in recent years.Affected by the macroeconomic downturn,regulatory policies,and the company's own factors,the continuous high-goodwill impairment of asset-light companies has seriously affected the company's operating performance.High-goodwill has become a major hidden danger to the stability of the asset-light industry.The huge amount of goodwill impairment incidents of Zeus Entertainment in early 2019 made the issue of goodwill of light asset companies become the focus of academia,and it has important theoretical and application value to study the risk and prevention of goodwill impairment of light asset companies.This article takes Zeus Entertainment Co.,Ltd.,which provided a large amount of4.06 billion yuan of goodwill impairment provisions in 2018,as an example to deeply study the risks and prevention of goodwill impairment of M&A of light asset companies,and put forward prevention suggestions from the micro and macro levels with a view to The research on the issue of goodwill impairment of listed companies provides a certainidea,which has a strong reference for guiding the formulation of M&A strategies of other companies in the industry and the prevention of goodwill impairment.It also provides actions basis for the formulation of standards and capital market supervision.