Research On The Causes And Risk Prevention Of Goodwill Impairment Of M＆A In The Game Industry ——A Case Study Of Ourpalm’s M＆A Of Dovo Technology

Driven by national policies and the development needs of enterprises themselves,China’s game industry has set off an upsurge of M ＆ A.The goodwill of game enterprises has been "thundering" frequently,which has seriously disturbed the capital market.Therefore,it is of great practical significance to explore the causes of goodwill impairment and risk prevention in the game industry.This paper takes Our Palm,which is active in the M ＆ A market,as the case study object.After continuous high premium M ＆ A,the huge impairment of goodwill in 2018 led to a sharp decline in its performance.In 2020,the proportion of goodwill of Our Palm in net assets is still as high as 30%,and there is a large risk of goodwill impairment.In the process of M ＆ A of Dovo Technology,Our Palm had adopted a series of measures to prevent the risk of goodwill impairment.Since then,the proportion of goodwill impairment accrued for Dovo Technology is the largest.Therefore,the effectiveness of the preventive measures against the risk of goodwill impairment in the M ＆ A of Dovo Technology by Our Palm is worth exploring.Combined with event study and financial index analysis method,this paper makes a multi-dimensional quantitative study on the impact of goodwill impairment on the performance of Our Palm.On the one hand,this paper vertically compares the changes of Our Palm’s own financial indicators,on the other hand,it selects two enterprises and industry average for horizontal comparison.In the research on the motivation of goodwill impairment in this case,combined with relevant literature and theories,this paper analyzes the motivation of goodwill impairment from the perspectives of external environment and enterprise interior.In the research on the prevention of goodwill impairment risk of Our Palm,this paper uses the segmented identification method to divide the risk factors of goodwill impairment into three stages: before M＆A,during M＆A and after M＆A,and combines the identified risk factors with the deficiencies in the existing goodwill impairment risk prevention measures of Our Palm to explore the problems existing in the prevention of goodwill impairment risk of Our Palm,Finally,it puts forward further improvement suggestions for the prevention of goodwill impairment risk of Our Palm.The results of this study show that the nature of the industry and policy changes are the external environmental drivers of the goodwill impairment of M＆A cases,while the internal drivers of the goodwill impairment of case enterprises are the dereliction of duty of management,unreasonable evaluation of the target enterprise,defects in the design of M＆A agreement and imperfect integration after M＆A.Moreover,by analyzing the impact of goodwill impairment on enterprise performance,it is found that goodwill impairment will increase enterprise financial risk and cause enterprise stock price fluctuation.In addition,based on the identification and evaluation of the risk factors of goodwill impairment,this paper finds that there are still some defects in the prevention measures of goodwill impairment risk of Our Palm,so as to put forward some suggestions to avoid the risk of goodwill impairment,such as controlling M＆A premium,improving agreement design and active M＆A integration.Through the analysis of typical cases,this paper enlightens other game enterprises and provides reference for relevant departments to improve accounting policies and strengthen supervision.