Research On Goodwill Impairment Of Jiayun Technology From The Perspective Of Internet Bubble

With the rapid development of the Internet industry in the new economic situation,traditional industries are eager to transform the Internet,and mergers and acquisitions with high premium and high goodwill accompanied by huge performance promises frequently occur,leading to the disconnection between the market price and the actual value of assets,and gradually forming the Internet industry bubble.In recent years,goodwill impairment of listed companies frequently occurs.Moreover,the attention of the CSRC on this issue is increasing day by day,and the importance of the goodwill impairment issue is gradually revealed.After analyzing the overall status of goodwill and impairment in Internet and related industries in our country,this article finds that the amount of goodwill and impairment in this industry is an increasing trend.There is great risk and it is worth paying attention to.Taking Jiayyun Technology,which has successfully converted from a traditional enterprise to an Internet enterprise,as a case company.A series of researches and discussions are made on the goodwill impairment caused by the merger and acquisition of Internet enterprises.First of all,this paper explores the source of goodwill impairment of Jiayun Technology,namely high premium merger and acquisition,and determines the existence of high premium merger and acquisition through the comparison and analysis of the value evaluation of the target enterprise acquired by Jiayun Technology and the actual merger and acquisition situation of the case company through the value evaluation model.Secondly,this paper analyzes the reasons for the high premium M&A of Jiayun Technology,including the fact that it is eager to transform itself under the background of the rapid development of the Internet and chooses to pay a high consideration price for M&A,the over-optimistic performance commitment of the target enterprise leads to the enterprise’s willingness to accept a high premium,and the high premium M&A caused by the irrational characteristics of the management.Finally,this paper analyzes the causes and economic consequences of goodwill impairment of Jiayun Technology.Among them,the causes of goodwill impairment include the lack of obvious synergistic effect after the merger and acquisition,the sub-standard performance commitment and performance change caused by the subsequent decline in the operating performance of the target enterprise,etc.In addition,by using the event study method and the financial analysis method,we study the financial condition of the company and the economic consequences of the market reaction after the large amount of goodwill impairment,and find that the large amount of goodwill impairment will cause adverse results to the enterprise.Using specific case studies,this paper presents issues related to goodwill and goodwill impairment in traditional enterprise transformation mergers and acquisitions under the background of Internet bubble,explores their root causes and economic consequences,and summarizes experience and provides effective countermeasures and suggestions for stakeholders.It is helpful for listed companies to improve their awareness of the impairment risk contained in the provision of huge goodwill in the process of transformation and merger,so as to reduce the possibility of losses caused by huge impairment.It is helpful for the standard making institution to optimize the current measurement criteria of goodwill and strengthen the supervision.It is beneficial for external investors to pay more attention to goodwill impairment information,carefully examine the value of the company,and reduce investment risks.