| Due to the blindness of mergers and acquisitions and the complexity of the process,goodwill,as an important asset of enterprises,plays an increasingly important role in the survival and development of enterprises.At present,the focus of goodwill research is mostly focused on economic consequences and generative motivation:economic consequences are mainly measured by value relevance,that is,capital market value;generative motivation mostly uses large sample empirical method to test the impact of earnings management,loss of profitability,merger and Acquisition Premium and other factors.The innovative points of this paper are:(1)In examining the value relevance of goodwill impairment,the scope of earnings management is expanded:"bathing" and profit smoothing;(2)In examining the value relevance of goodwill impairment,the role of business operation mode represented by continuous mergers and acquisitions is tested;This paper explores the correlation between impairment of goodwill and corporate value under different incentives by combining case analysis and empirical test.Firstly,based on the current market background,this paper chooses the typical listed companies with high risk of goodwill impairment:Great Wall Film and Television,and makes a case study of the reasons and economic consequences of its goodwill impairment,sums up the motivation of earnings management and the causes of value destruction(continuous mergers and acquisitions)and their corresponding economic consequences;secondly,this paper uses 2012 to 2017.All A-share listed companies are taken as samples.The correlation between goodwill impairment and corporate value is studied by multiple linear regression.Finally,based on the case and empirical analysis,the correlation between impairment of goodwill and corporate value under different incentives is obtained.This study finds that:(1)The impairment of goodwill has value relevance;(2)Value relevance is different under different impairment motivations:earnings management motivation signals are not recognized by the market,and the impairment of goodwill caused by value damage caused by continuous mergers and acquisitions will be more negatively reacted.The results of this study will provide support for the role of impairment of goodwill in mergers and acquisitions.Firstly,through case analysis,this paper explores the motivation and economic consequences of impairment of goodwill in industries with high incidence of impairment of goodwill,and provides a case reference for identifying the causes of impairment of goodwill and its impact;secondly,it verifies the correlation between impairment of goodwill and enterprise value,and enterprises should carefully weigh the special asset of goodwill in mergers and acquisitions with high premium.The two-sided impact on the current and future operation of enterprises.Finally,it provides suggestions for market investors to correctly understand the impairment of goodwill. |
