A Study On The Impairment Of Goodwill On Successive Mergers And Acquisitions Of Ourpalm

In the current trend of diversified economic development,the way of enterprise management and development is also changing.In order to better adapt to the changes of the market economy,optimize the industrial chain,and complete the strategic objectives of enterprise development,more and more enterprises have embarked on the path that can quickly achieve this goal--merger and reorganization,thus setting off a wave of mergers and acquisitions among enterprises.In order to quickly achieve the purpose of M&A,enterprises often pay a price several times or even tens of times more than the target enterprise’s own net asset value,resulting in the formation of large-scale goodwill of the M&A enterprise.This kind of premium merger and acquisition often hides a huge risk of goodwill impairment.In the event of poor management and substandard performance of the target enterprise in the subsequent operation process,the provision for goodwill impairment will be made.In serious cases,it will even lead to "thunder" in performance,which will cause a devastating blow to the subsequent continuous operation of the enterprise.Therefore,the problem of goodwill impairment has become one of the urgent problems to be solved in the capital market.Based on the above background,this paper selects Palm Fun Technology Co.,LTD.,which has a high amount of goodwill impairment,as the research object,and systematically reviews relevant literatures such as initial recognition of goodwill,subsequent measurement,influential factors of impairment and economic consequences.Combined with the theory of synergistic effect,enterprise value assessment,earnings management,information asymmetry theory and other theoretical basis,the goodwill impairment problem of Zhangqu Technology is deeply studied and analyzed.First of all,based on the background and characteristics of mergers and acquisitions in the information technology industry,this paper makes an in-depth analysis of the reasons for its high-premium mergers and acquisitions from the aspects of merger motivation,value evaluation method,payment method and performance commitment.Secondly,combing the relevant data of the goodwill impairment of Zhangqu Technology,exploring the problems existing in the follow-up measurement methods and the root causes of the goodwill impairment;Thirdly,case analysis and event study are used to deeply analyze the economic consequences and market reactions caused by goodwill impairment.Finally,based on the above analysis,corresponding optimization suggestions are put forward from the three aspects of rule-making,supervisory institutions and the behavior of the M&A party,so as to provide theoretical support for the sustainable and healthy development of enterprises.Based on the above analysis,this paper draws the following conclusions: First,in order to obtain synergies during the merger and acquisition process of Palm Fun Technology,the merger and acquisition with a blindly high premium leads to huge subsequent business risks;Second,the goodwill impairment is the result of multiple factors,among which the high premium merger and acquisition is the main reason for the goodwill impairment of Palm Interest Technology.The performance of the underlying enterprise is not up to standard and the management has the earnings management motivation,which further worsens the goodwill impairment.Third,continuous merger and acquisition cannot fundamentally improve the core competitiveness of Palm Fun Technology,and the subsequent goodwill impairment will have a huge negative impact on the business performance and stock price of the enterprise;Fourth,to reduce the impact of goodwill impairment on the capital market,not only requires rational mergers and acquisitions of enterprises,but also requires external accounting standard setting institutions and relevant regulatory departments to play a role.