A Study On The Effect Of M&A Premium In New Energy Industry On Goodwill Impairment

With the support of market competition and policies,the mergers and acquisitions of listed companies have continued to heat up in recent years.The "high valuation,high premium,high performance commitment" M&A transaction means that huge goodwill will follow,and the potential impairment risk accumulated behind it should not be underestimated.Since 2016,the cases in which listed companies have accrued impairment losses of goodwill have appeared frequently.The problem of the deterioration of the performance of listed companies caused by the impairment of goodwill has become more prominent in 2017.Due to the large amount of depreciation of goodwill arising from listed companies,in recent years,the regulatory authorities have gradually strengthened supervision and guidance on the standardization of accruing huge amounts of goodwill.At present,the research on M&A premium focuses on the motivation of M&A,the influencing factors of M&A premium and the economic consequences caused by premium;the research on the impairment of goodwill focuses on the definition of goodwill,the factors affecting the impairment of goodwill and the impairment Economic consequences;the relationship between M&A premium and goodwill impairment is mostly empirical.The research question in this paper is:How does the capital market react to premium mergers and acquisitions to corporate mergers and acquisitions,and how to further trigger the huge amount of goodwill impairment?The case selected in this paper is a typical "snake swallow" merger in the "new energy lithium battery" industry,which is a popular M&A concept in recent years.The special case is the high valuation and high premium when the transaction occurs,and the performance is soaring.In just one year,the full value of goodwill was deducted and the performance fell sharply.This paper analyzes the causes of mergers and acquisitions premiums and huge goodwill and the risk of impairment,further explaining the birth path of the impairment of mergers and acquisitions.The research in this paper finds that the excessive M&A premium is difficult to support the high operating performance required by the false high reputation.At this time,the premium will be transformed into risk.Finally,the performance of the goodwill impairment will destroy the company's profit and undermine the rational valuation of the capital market.,harm the interests of small and medium shareholders.The path of the impact of mergers and acquisitions premium on the impairment of goodwill can be explained as:the consideration of M&A transactions with high valuation as the basis of pricing flourishes under the prosperous capital market,and the false high equity consideration will be directly converted into goodwill and included in the consolidated corporate finance.Report.As the value of assets increases,the goodwill recognized in M&A activity becomes higher,and the goodwill bubble accumulates.When the capital market is gradually quiet,companies are more cautious about launching mergers and acquisitions.The goodwill bubble that was confirmed at the time of high-value mergers and acquisitions needs to look for "exports",and the impairment of goodwill becomes the channel to clean up the false high reputation bubble,that is,the market valuation.The rational return triggered a huge amount of goodwill impairment.The enlightenment of this study is that the excessive valuation and payment consideration in M&A transactions generate a merger and acquisition premium,and the premium is directly transmitted to goodwill;the premium paid during the merger may be converted into risk because the expected earnings before the merger cannot be realized.The company's profits are eroded by the impairment of goodwill.At the same time,listed companies will actively push up the stock price and promote premium mergers and acquisitions,while the impairment of goodwill will become a means for listed companies to manage their earnings.In view of this,the research in this paper can help market participants to actively identify the risks that may be brought about by the impairment of goodwill,such as increasing the earnings management space of listed companies,causing distortion of the investment value of listed companies,exacerbating the uncertainty of future performance of listed companies,and harming minority shareholders.interest.The research in this paper is also of great significance to improve the quality of accounting information.