On The Causes And Countermeasures Of Goodwill Impairment In The Media Industry

With the continuous acceleration of economic restructuring and adjustment of the industrial structure,listed companies in the media industry have greatly increased their willingness to expand in the face of development bottlenecks.Since 2013,listed companies in the media industry have continuously carried out corporate mergers and acquisitions to achieve capital concentration through optimized allocation of resources,and the number of corporate M&A has increased dramatically.Goodwill,as an enterprise's ability to obtain excess returns,has also increased with the continuous mergers and acquisitions of enterprises.However,while the M&A boom has injected new vitality into the market,it has also brought huge risks of goodwill impairment.In the 2018 ranking of listed companies in Shanghai and Shenzhen,seven of the top ten companies with the largest amount of losses were cultural media companies.The goodwill impairment of listed companies in the media industry is common.The measurement of goodwill impairment is a bit subjective.The huge amount of goodwill impairment not only reduces the asset quality of the media industry,but also brings operating pressure to the media industry.Therefore,this article will focus on the phenomenon of large-scale goodwill impairment in the media industry,using literature research,statistical analysis and case analysis to explore the cause of the large-scale goodwill impairment in the media industry,and propose the corresponding preventive measures.The paper first elaborates the related concepts and theories of goodwill used in this paper,and discusses the rationality of the accrual motive of goodwill impairment and the fairness of the accrued amount through literature research.Then,this article analyzes the status and characteristics of the media industry,as well as the impairment of goodwill in the media industry,which lays the foundation for the in-depth analysis of the media industry in this article.Further,this article analyzes the goodwill impairment of Tangle,the main reason for the existence of goodwill impairment lies in the following: First,the valuation of the target company is unrealistically high.On the one hand,there is a problem with the assumption,which the asset evaluation agency uses in the DCF.On the other hand,high performance commitments pushed up the valuation.Second,the synergies of M&A have not brought into full play.Media industry choose cross-industry M&A and expect synergy,but the performance of target companies after acquisition is not up to expectations Third Inadequate identification of intangible assets,the core profitable business of the gaming industry to which the target company belongs is an intangible asset,which can only be reflected in goodwill during mergers and acquisitions.Fourth,there is a problem with the evaluation of the enterprise value,and the company should accrue the provision for goodwill impairment without making provision.Fifth,the management's timely cleansing and accurate shareholders' high-level reduction of stakes reflected the motive of earnings management behind the goodwill impairment.These reasons have led to increased operating pressure and debt repayment pressure.Based on the above analysis,this article proposes the following: By strengthening the supervision of valuation agencies and strengthening the quantitative constraints after the performance commitment period,adhere to the rational evaluation of the target company.improve the synergy effect of M&A by improving the continuous integration of M&A and insisting on rational selection of M&A;Clarify the difference between intangible assets and goodwill,improve the subsequent measurement of goodwill,and strengthen the disclosure and supervision of goodwill information.The innovation of this article mainly reflected in three aspects: First,from the perspective of the industry,this article statistically analyzes the phenomenon of goodwill impairment in the media industry.Second,this article analyzes the earnings management behaviors of corporate management and large shareholders,and analyzes the underlying reasons for the goodwill impairment.Third,from the perspective of synergy and identification of intangible assets,this article analyzes the causes of goodwill impairment after cross-industry M&A in the media industry,and discusses the causes of goodwill impairment in cross-industry M&A in greater depth.