Research On Consolidation Goodwill Of Cultural Media Companies

With the development of the economy and changes in the social environment,market competition has intensified.In order to maintain their own advantages and achieve long-term development in the fierce competition,most companies choose to consolidate their position through mergers and acquisitions.In recent years,China has increased its support for the cultural industry and launched a series of favorable policies.The media industry has ushered in opportunities for development and prosperity,and M&A activities within the industry have intensified.However,in view of the nature of the “light assets” of the media industry itself,there is a phenomenon of “high valuation,high premium,high performance commitment”,and the resulting impairment risk increases with the accumulation of goodwill,and then a large number of Media companies are affected by the huge amount of goodwill impairment,and the industry's "performance changes face" and other chaos.On November 6,2018,the China Securities Regulatory Commission issued the "Accounting Supervision Risk Warning No.8-Goodwill Impairment" to further strengthen the accounting supervision of goodwill impairment and standardize the accounting treatment and information disclosure of listed company's goodwill impairment.And so on.The research value and practical significance of the issue of goodwill impairment have become prominent.Therefore,based on the perspective of goodwill,this paper will elaborate on the following six aspects: first is the foreword,which mainly presents the background and significance of this paper.The second part is the literature review and theoretical basis.It mainly organizes and summarizes the relevant basic theories of goodwill,the recognition and measurement of goodwill,the impairment of goodwill and its risks,and the synergistic effects involved in the analysis.Theory,information asymmetry theory,overconfidence theory and principal-agent theory are elaborated.The third part is an overview of the mergers and acquisitions of the media industry,mainly including the background of China's media industry,industry mergers and acquisitions and the status quo of goodwill.The fourth part introduces the basic situation of the case event Blue Focus M&A Bojie advertisement in this paper.In addition,it analyzes the accounting treatment of the merger goodwill.The fifth part is the main part of this paper.It explores the causes of the huge amount of goodwill impairment in the event,the impact of huge goodwill and its impairment risk on the company,and the existence of the corporate reputation impairment risk prevention in the event.The problem is analyzed in depth.The sixth part summarizes the conclusions of this paper and makes some suggestions.This paper uses normative analysis,literature research and financial analysis to summarize the research conclusions of predecessors,and based on the relevant conclusions,with the help of the financial data in the Wind database and the listed company's annual report,the status quo of high-value mergers and acquisitions in the media industry.As well as an overview of the goodwill impairment,the incident of Blue Focus merger and acquisition Bojie advertising was selected as a typical case for analysis.The results of the study found that: 1.The overvaluation of the merger consideration and the management's blind premium purchase,the high performance commitment and the irrationality of the subsequent measurement of goodwill are the main reasons for the huge goodwill impairment;2.The huge goodwill impairment The impact on the M&A company is extremely significant.The specific performance is to aggravate the uncertainty of the company's future performance,affecting the company's business performance in both directions,and infringing the interests of small and medium investors.3.In the case of high media reputation in the media industry,the case company exists.The recognition of goodwill impairment risk is not in place,and there are many problems such as risk prevention.The main performance is: performance compensation commitment to prevent valuation risk from failure,internal control imbalance and subjective evaluation of goodwill valuation.Finally,this article makes some suggestions for the above issues.