| The accumulated amount of goodwill in China’s media industry due to mergers and acquisitions has been consistently high,which is accompanied by a series of problems of impairment of goodwill.In recent years,media companies have accrued large-scale goodwill impairment losses due to poor management or performance commitments,and even some companies have fully accrued huge goodwill impairment reserves within one year,which directly caused The net profit of the enterprise turned from profit to loss,and the operation of the enterprise collapsed.Hualu Baina,as a long-established film and television culture media company,has a relatively single main business and is positioned as a boutique drama market.In the fierce market competition,it is becoming weaker and weaker,and market demand and viewer preferences are changing too fast,which makes TV content production suffer from life-cycle risks and the risk of declining market popularity.After Hualu Baina acquired Lanse Huoyan in 2014,its stock price quickly reached its peak.In the 2017 fiscal year,after the performance commitment expired,Hualu Baina made provision for impairment of goodwill due to the change of Lanse Huoyan’s performance.Since then,the financial risks of Hualu Baina have been out of control,with successive years of losses in profits,declining performance,fluctuations in stock prices,and difficulties in collecting payments.On the basis of previous studies,this paper uses principal component analysis method to analyze the financial risk of Hualu Baina in 2018.And analyzes the reasons for the financial risks caused by the high goodwill.The impact of goodwill on financial risk is also reflected in the integration stage after M &A.It also affects the level of corporate financial risk after the expiration of performance commitment.Therefore,this paper will also extend the research perspective to the maturity of the performance commitment of both parties to the merger,and use the efficiency coefficient method to study the company’s financial performance changes after the performance commitment expires.Research has shown that Hualu Baina’s performance has indeed seen a significant decline after the performance commitment expires.Further analysis shows that during the performance commitment period,Hualu Baina used its target company Blue Flame’s tax reduction and exemption and made accounting changes mainly to change the accrual ratio of bad debts to adjust the profit,so that the commitment reached the target accurately,and the performance commitment expired After Hualu Baina set aside a huge amount of goodwill to cope with the pressure brought by asset impairment and offset profits.It hopes to provide reference and reference significance for other companies that have high goodwill mergers and acquisitions and sign performance commitments in the cultural media industry,and maximize the positive effects of M&A. |
