Research On The Risk Of Tianshen Entertainment's Share Price Overvaluation And Goodwill Impairment

With the continuous development of the capital market,the survival and development of enterprises have been changing,more and more companies choose mergers and acquisitions to enable them to rapidly expand their business,optimize their industrial structure and successfully complete the transformation and upgrading of enterprises.However,behind this wave of mergers and acquisitions is a huge amount of goodwill and its impairment risk.Listed companies and even the whole market now have to face the risks brought by outsourcing goodwill.Goodwill has become one of the most important problems in today's capital market.It has laid a great hidden danger to the normal market order and the future operation of listed companies.How to effectively prevent the loss of goodwill impairment has become one of the hot issues that everyone is very concerned about.This article takes the goodwill of Tianshen Entertainment as a research object.It based on the concepts of goodwill impairment and Asymmetric Information Theory,and then sort out and summarize the research on stock price,goodwill and goodwill impairment by domestic and foreign scholars,and clarify the research direction.This article uses the method of decomposing the market value of book to book ratio,combined with Tianshen Entertainment's M & A activities to analyze its stock price,and compare it from the horizontal and vertical.Based on the conclusions drawn,explore why Tianshen Entertainment continues to increase M & A and goodwill impairment risks,and then put forward countermeasures and suggestions to provide experience for companies with high goodwill to prevent goodwill impairment.The results of this study show that: Tianshen Entertainment has implemented more mergers and acquisitions than ever before when the stock price was overvalued,and paid a high premium,resulting in a large amount of goodwill in mergers and acquisitions,and the risk of impairment of goodwill continues to accumulate until the performance commitment period At maturity,due to various factors leading to failure to complete performance commitments,significant impairment of goodwill will be accrued,resulting in substantial losses in profits of Tianshen Entertainment,which in turn will affect the development of Tianshen Entertainment.There are many reasons for the impairment of goodwill at Tianshen Entertainment.There are problems with valuation methods in mergers and acquisitions.The company has serious flaws indecision-making and governance.There are still some imperfections in relevant policies.There are also loopholes in external audit and supervision.Therefore,we have drawn some enlightenments to prevent the risk of impairment of goodwill from multiple perspectives.The government should standardize accounting standards and standardize the recognition and measurement of merger and acquisition goodwill.At the company level,internal management should be done well,prudent operation,and careful mergers and acquisitions.The supervision level should improve the supervision mechanism,guide the company to rational mergers and acquisitions,and improve the relevant system.