| Based on earnings management theory and overconfidence theory and other related theories,The case object is Inly Media’s acquisition of Zhuhai Shitong.To introduce the parties concerned,the huge amount of goodwill and the recognition of goodwill impairment.To understand the internal and external causes of goodwill impairment and the negative economic consequences.The research found that Inly Media expects to take advantage of the national macro policy guidelines to integrate corporate resources,improve business to form synergies,and improve the profitability of the company to make mergers and acquisitions of Zhuhai Shitong.The reason for the subsequent impairment of goodwill is related to the internal causes of the enterprise or the external environment.The internal reasons include: as of the acquisition time,the acquired company has only been established for two years,the time is short,the development is not stable,and the development of the advertising industry in which it is located shows a downward trend during the acquisition year,but the appraisal agency chooses the income method for optimistic valuation.High goodwill creates hidden dangers for goodwill impairment;the acquired company loses major customers and the number of new customers is less than the reduction of customers,and its own business structure adjustment fails to produce economic benefits in a timely manner,resulting in a blank period of profit,resulting in substandard performance commitments;In order to deal with the impact of possible changes in the subsequent measurement model of goodwill on future profits,the management of the enterprise manipulated the goodwill impairment surplus.External factors include: fluctuations in the country’s overall economic environment,the impact of corporate development,and TV advertising industry hit by Internet advertising industry.This paper examines the economic impact of impairment of goodwill.On the one hand,The reaction of the capital market is studied through the event study method,and it is found that the company’s first disclosure of goodwill impairment makes the short-term market fluctuate violently,and the excess progressive rate of return reaches the lowest value.On the other hand,By measuring the performance changes after the advance of the goodwill impairment,and analyzing the goodwill impairment by horizontal and vertical comparison,resulted in a significant decrease in the profitability of Inly Media,the total assets of the enterprise decreased,the solvency was worrying,and the growth ability was also affected,and there was no negative impact on the operating ability.Finally,relevant suggestions are made : Evaluation institutions should improve their own practice level;enterprises should choose appropriate consideration methods and fully consider the risk warnings given by evaluation institutions;investors should reserve certain professional knowledge and invest prudently;accounting standard-setting institutions should introduce amortization method to avoid corporate earnings manipulation;regulatory agencies Due attention and preventive measures should also be given. |
