The Reason For The Premium Of Mergers And Acquisitions In The Film And Television Industry And Its Impact On The Impairment Of Goodwill

In this paper,Huayi Brothers,one of the giants in the film and television industry,is selected as the research object,and Huayi Brothers' acquisition of Dongyang Meila,a typical case of premium acquisition in the film and TV industry,is taken as the specific analysis material to explore the reasons for the acquisition premium in the film and TV industry and its impact on the impairment of goodwill.Since the "policy loosening" in 2014,various industries have started a boom in mergers,and the premium bubble has become increasingly serious in the mergers market.Due to the high added value and other characteristics of the film and TV industry,the case of extremely high price acquisition is more common in recent years.What are the common causes of acquisition premium in the film and TV industry? Through the review of relevant research and theories,we find that many factors,such as principal-agent conflict,information asymmetry,overconfidence of managers,over expectation of synergy effect,bad acquisition motivation such as interest transmission,over optimistic performance commitment and so on,can partly explain the phenomenon of acquisition premium in the film and TV industry.In view of the availability of information and data and the feasibility of quantitative methods,this paper mainly analyzes the causes and mechanism of acquisition premium in the film and TV industry from three perspectives: information asymmetry,manager overconfidence and performance commitment.Further,this paper applies the acquisition premium mechanism to the case study of Huayi Brothers' acquisition of Dongyang Meila,and with the help of comprehensive analysis tools such as trend analysis,ratio analysis and comparative analysis,discusses how the acquisition premium in the film and TV industry is generated and what impact it has on the subsequent impairment of goodwill.The conclusion of the case study shows that the acquisition premium in the film and TV industry is caused by multiple factors such as information asymmetry,managers' overconfidence and over optimistic performance commitment,which is positively related to the impairment of goodwill in the future.That is to say,the higher the premium paid by enterprises in the merger,the higher the possibility of impairment of goodwill generated by the merger in the future,and the greater the amount of impairment.The acquisition premium and the large amount of goodwill impairment not only caused many adverse effects on the development of enterprises in film and TV industry,but also caused great harm to industry practitioners and investors.After withdrawing large amount of impairment loss of goodwill,not only the net profit and other financial indicators of the year of the enterprise are severely damaged,but also the interest of the enterprise in the capital market will fall or even collapse.Only by merger assessment agencies strengthening their own professional level and improving their professional ethics,enterprises in film and TV industry establishing and improving the risk control mechanism of their own mergers,and regulatory authorities further strengthening the supervision and control of unreasonable acquisition premium and unreasonable goodwill recognition or impairment,can the sound development of the film and TV industry be achieved through multi-party linkage and cooperation.