Research On Goodwill Impairment Of Dalian Zeus Entertainment Co.,Ltd High Premium M & A

With the "deregulation" of state policies on the environment of M & A and restructuring of Listed Companies in 2014,the level and scale of M & A in China have increased significantly,high premium M & A has become the norm,and the book value of M & A goodwill has accumulated rapidly.In the context of the expansion of M & A scale,the shortsightedness of M & A and the economic downturn in 2018,the occurrence of huge goodwill impairment has a huge impact on the market,indicating that the higher the book value of goodwill,the greater the impact of subsequent goodwill impairment on enterprises and capital market.Based on the above situation,this paper first combs the related literature of M & A pricing and goodwill,and expounds the related concepts and theories of M & A pricing and goodwill impairment.Secondly,this paper selects the high premium M & A of Dalian Zeus Entertainment Co.,Ltd.as the case study object,analyzes whether the high valuation of the target enterprise is reasonable in the process of M & A by comparing the evaluation methods of evaluation institutions and the financial indicators before and after M & A,explores the reasons for the non-standard performance after M & A of Dalian Zeus Entertainment Co.,Ltd.,analyzes the impact of the impairment of large amount of goodwill accrued by Dalian Zeus Entertainment Co.,Ltd.;and finally Through the study of this series of high premium M & A behavior,it is found that: the high goodwill generated by M & A does not necessarily bring about the improvement of business operation ability;the information asymmetry between the two sides of M & A will bring about the high appraisal price of assets,and then generate the high goodwill,and the failure to fulfill the performance commitment will lead to the generation of goodwill impairment,which will eventually lead to the loss of the interests of small and medium-sized investors.At the same time,the motivation of earnings management and the business problems after M & A will indirectly lead to the occurrence of goodwill impairment.Through the case analysis of Dalian Zeus Entertainment Co.,Ltd series M & A,this paper puts forward the following suggestions:(1)on the enterprise side: rational M & A,give full play to the role of the board of directors and shareholders’ meetings,attach importance to merger negotiations and the integration work after M & A to enhance the endogenous ability of enterprises;(2)on the part of the regulatory authorities: standardize the M & A performance commitment,strengthen the follow-up information disclosure,and improve the goodwill accounting standards;(3)On the aspect of asset appraisal institutions: improve the ability to practice and maintain their own independence,improve the methods of asset evaluation;(4)on the aspect of investors: to identify the signs and means of goodwill impairment,and to effectively reduce the negative impact of goodwill impairment by adopting reasonable ways.