A Study On The Use Of Goodwill Impairment In Earnings Management Of Huawen Media

Goodwill is a topic of great concern in the current accounting field.Since 2014,China's capital market has set off an upsurge of M &A with high overvaluation,high performance commitment and high goodwill.With the rapid growth of the scale of goodwill,the potential risk of goodwill impairment also increases.Since 2017,there have been frequent "thunder" events of goodwill in China's capital market,and many companies have made large amount of provision for impairment of goodwill after the expiration of performance commitments.However,the research of related scholars shows that the goodwill impairment of Listed Companies in recent years is not an independent phenomenon,and there are usually earnings management behaviors of the management of listed companies behind it.Huge goodwill provides the management with the space for earnings management.In the current situation of imperfect regulatory system and information disclosure system,this kind of earnings management behavior will cause a major blow to the interests of small and medium shareholders and affect the smooth operation of the capital market.Therefore,it is of great significance to explore the impairment behavior of goodwill management.Under the above background,this paper combines the theoretical research and case study,summarizes the domestic and foreign literature research and relevant theoretical basis of goodwill impairment,earnings management and earnings management using goodwill impairment.Using the method of case study,this paper selects the typical case of "thunder storm" event of goodwill of listed company Huawen media in 2018 for in-depth study.First of all,this paper reviews the transaction process of the acquisition of Chenghuai technology,Zhangshi Yitong and Jingshi culture by Huawen media,as well as the formation of goodwill and the subsequent impairment provision process.Then,it uses the modified Jones model to confirm that Huawen media does have significant negative earnings management behavior in 2018,which lays the foundation for subsequent research and analysis.Secondly,for the case company,this paper analyzes the earnings management behavior of Huawen media in 2018 by using huge goodwill impairment from four dimensions of motivation,means,opportunity and impact of earnings management.Through the above research,it is found that huge goodwill has created space for earnings management,imperfect supervision and information disclosure system has also provided opportunities for earnings management,and this improper earnings management behavior has also caused many negative effects,such as capital market turbulence and damage to the interests of investors.Finally,this paper puts forward relevant suggestions for the above conclusions: from the regulatory perspective,it is suggested that regulators strengthen the control of M &A transactions,evaluation intermediaries and goodwill impairment.From the perspective of standards,it is suggested to improve the timeliness of goodwill impairment,improve the evaluation method,and explore the feasibility of the coexistence mode of amortization method and impairment method.From the perspective of information disclosure,it is suggested that enterprises should strengthen the implementation of goodwill information disclosure,fully disclose the impairment test process and the operation status of the target company,so as to improve the public's judgment and cognition on whether goodwill is impaired.