Study On The Causes And Economic Consequences Of Goodwill Impairment Of Enterprises Under High-premium Mergers And Acquisitions

In recent years,driven by factors such as national policy support,continuous upgrading of residents 'cultural consumption structure,and the need for corporate development strategies,companies in the media industry have entered a period of rapid merger and reorganization.Between 2013 and 2017,82 of the 139 media companies listed on the Shanghai and Shenzhen Stock Exchanges disclosed major reorganizations,and 108 transactions were actually completed,with a total transaction value of 289.5 billion yuan.However,since the media industry began large-scale mergers and acquisitions and reorganization activities,some irrational investment behaviors have also appeared in the market.At this time,mergers and acquisitions and reorganizations usually have “three highs”: high valuations,high premiums,and high performance commitments.Large-scale goodwill arises at the historic moment.If the subsequent performance of the target company being acquired does not meet the expected state,this part of the goodwill will face the risk of impairment.In addition,the consequent possible consequences such as conceptual hype,failed business integration,and large stock price fluctuations will also affect the healthy development of the industry and run counter to the government's policy guidance for the capital market to support the real economy.Therefore,this problem has caused market and Supervision attaches great importance.The case of the magical age of M & A of Tangel Culture selected in this article happened in 2014.As a traditional media company mainly engaged in book publishing,Tangel Culture tried to embark on the transformation path due to weak revenue growth.The high premium acquired the magical era of the mobile game industry company at the time and confirmed the high amount of goodwill.After a relatively stable three-year performance gambling period,in 2017,due to the delay in the launch of new game products in the Magic Times,the online game product flow did not meet expectations and the current performance fell sharply.Goodwill impairment provision was 1.036 billion yuan.The net profit attributable to ordinary shareholders of listed companies for the year was-108.56721 million yuan,a year-on-year decrease of 910.10%.This article mainly uses the case analysis method to first introduce the basic situation of mergers and acquisitions cases,and then combine the factors at the macro and micro levels to analyze the causes of goodwill impairment.At the same time,analyze the economic consequences of this large amount of goodwill impairment based on existing data.Through such a systematic analysis,try to comprehensively analyze the causes and consequences of this typical case,and summarize the lessons that Tangel Culture and similar media companies can learn from this goodwill impairment event.In view of the impact of high-premium mergers and acquisitions on the impairment of goodwill,this article puts forward preventive suggestions such as the rational formulation of corporate development strategies,rational valuation of mergers and acquisitions targets,further optimization of mergers and acquisitions methods,and increased supervision of mergers and acquisitions in order to achieve the purpose of standardizing corporate mergers,acquisitions and reorganizations and the provision of goodwill impairment,effectively avoiding the risk of goodwill impairment,and promoting the stable operation and development of the economic market.