Research On Goodwill Formation And Impairment In Mergers And Acquisitions Of Zeus Entertainment

In recent years,the game industry has carried out a large number of mergers and acquisitions in the upsurge of mergers and acquisitions,many game industry enterprises have formed a large number of goodwill in frequent mergers and acquisitions in 2018,and the listed companies in the game industry suddenly have a large area of goodwill thunderstorm,to the market and small and medium-sized investors brought great harm.In this paper,based on the study of goodwill by domestic and foreign scholars,on the basis of the confirmation and measurement theory of goodwill,combined with relevant theories such as the Information asymmetry,the method of case analysis is used,this paper makes an in-depth study on goodwill measurement in the M ＆ A of entertainment companies.This paper introduces the process M ＆ A motivation from the perspective of external and internal development strategy.Then it analyzes the initial confirmation of Zeus entertainment goodwill,and finds that Zeus Entertainment has a relatively high valuation of the target enterprise in the process of M ＆ A,which leads to a false high goodwill in M ＆ A,the paper also discusses the reasons of high premium from three aspects: Valuation Method,Industry Characteristics and performance commitment.Secondly,this paper analyzes the causes of impairment from four aspects: Excessive Premium,incomplete performance index,change of approval policy and manager’s profit motive.This paper analyzes the economic consequences of goodwill impairment from stock market reaction,credit rating and financial performance.Finally,according to the conclusion of the case study,perfect the disclosure of goodwill impairment information,guard against the promise of performance in M ＆ A,provide enlightenment for the confirmation and measurement of goodwill of industry-related enterprises.