Study On The Change Of Goodwill After Successive Mergers And Acquisitions Of GRN Corporation

In recent years,mergers and acquisitions of listed companies have increased gradually,and the value of goodwill has also increased rapidly.Goodwill plays an important role in mergers and acquisitions of listed companies.Once expected earnings are not achieved,huge goodwill impairment is bound to occur,bringing huge negative impact and losses to listed companies.Therefore,it is very important for the future development of listed companies to study the causes of goodwill impairment and put forward suggestions.GRN Corporation,as a benchmarking enterprise in China’s sports industry,is representative of the industry.Since2016,the company has carried out several consecutive mergers and acquisitions.It is worth exploring and summarizing the motivations of its successive mergers and acquisitions,the changes of goodwill after successive mergers and acquisitions,the reasons for goodwill impairment and the economic consequences brought to the company.This paper mainly uses literature research method,event study method and comparative analysis method to specifically analyze the problems of goodwill impairment in GRN Corporation’s continuous mergers and acquisitions by studying literatures related to goodwill impairment.The paper is divided into five parts.Firstly,it introduces the background of goodwill impairment in continuous mergers and acquisitions,the purpose and significance of the topic selection,and sorts out the views of scholars at home and abroad.On this basis,the research framework is determined.In the second part,the concepts of continuous mergers and acquisitions,goodwill and goodwill impairment,as well as continuous mergers and acquisitions and related theories are summarized to provide theoretical support for the following research.The third part introduces the operating conditions and shareholders of GRN Corporation,summarizes the background and process of continuous mergers and acquisitions,analyzes the motivation of continuous mergers and acquisitions of GRN Corporation,and provides a basis for the study of the economic consequences of goodwill impairment in the following paper.The fourth part first analyzes the causes of goodwill impairment,and then analyzes the economic consequences of goodwill impairment from three aspects: short-term market reaction,financial performance impact and non-financial performance impact,and summarizes the positive and negative effects of goodwill impairment continuous mergers and acquisitions.The fifth part,starting from GRN Corporation’s continuous mergers and acquisitions,summarizes its experience and lessons on the problem of goodwill impairment in the continuous mergers and acquisitions.On this basis,it puts forward relevant suggestions for the company’s management,investors and market regulators to avoid the problem of goodwill impairment,hoping to provide some references for other enterprises’ continuous mergers and acquisitions.