A Study On The Impairment Of Goodwill In High Premium Mergers And Acquisitions From The Perspective Of Transformation And Upgrading

With the promulgation of a series of policies such as the Management Measures for Major Asset Restructuring of Listed Companies in 2014,the government supported enterprises to integrate resources through mergers,acquisitions and other means in combination with their own business and development,and explore the path of transformation,upgrading and industrial expansion.Under this policy background,from2014 to 2016,the capital market launched a "three high" M&A boom of high valuation,high performance commitment and high M&A goodwill.Listed companies expect to achieve sustainable development through horizontal and vertical M&A.However,with the intensification of competition and the rapid development of the capital market,after the M&A boom,the performance commitment period expired,and some of the merged enterprises experienced performance decline,the synergy did not meet expectations and other problems.The merged enterprises had to withdraw huge goodwill impairment,which caused widespread concern in the industry.Hailian Jinhui,the research object of this paper,was one of the M&A boom in 2016.With a high premium of RMB 3.038 billion,it was called the "most expensive M&A case of payment enterprises in history".However,the performance fell suddenly at the end of the performance commitment period.In 2019,the financial statements disclosed a huge goodwill impairment of RMB 2.069 billion,which shocked the A-share market.Therefore,this paper analyzes the case of huge goodwill impairment caused by the linkage advantage of Hailian Gold’s high premium M&A from the perspective of transformation and upgrading,and analyzes the motivation of cross industry M&A,the problems of goodwill impairment,the reasons and economic consequences of goodwill impairment.First of all,this paper analyzes the development status of the traditional manufacturing industry and the problem of goodwill impairment,and then takes Hailian Jinhui Company as the research object to analyze the motivation of its transformation and upgrading,and introduces the formation and impairment of its M&A goodwill.Secondly,according to the analysis of relevant announcements of Hyland Jinhui and the verification of the revised Jones model,the study found that there were problems such as insufficient disclosure of goodwill impairment information and earnings management manipulation,and found that high valuation,substandard performance commitments and operational risks after transformation and upgrading were the main reasons for goodwill impairment.Thirdly,in order to further explore the impact of goodwill impairment on its operating performance,through the use of event research method,entropy method and financial indicators to analyze the economic consequences of withdrawing goodwill impairment,it is found that the withdrawal of goodwill impairment has a significant negative impact on corporate performance and stock price.Finally,through combing the case summary and putting forward some suggestions.This paper draws a conclusion through case analysis: Hailian Jinhui has diversified,transformed and upgraded the Internet finance of emerging industries through mergers and acquisitions due to the increased pressure on its original business.However,due to the uncertainty of the development of new industries driven by "Internet plus",a high premium assessment has confirmed a number of off book assets,which are included in huge goodwill at one time,The goodwill impairment behind the substandard performance has affected the operating profit,and the market value has also dropped sharply,which not only reduces the confidence of small and medium-sized investors,but also severely damages the corporate image.