The Issue of Goodwill Impairment Behind Mergers and Acquisitions Of Cultural Media Enterprises

Abstract

In recent years, with the continuous introduction of merger and acquisition policies, an increasing number of enterprises have been seizing market shares and enhancing their development capabilities through mergers and acquisitions. However, mergers and acquisitions in the cultural and media industry are often accompanied by the risk of goodwill impairment. This paper conducts a dual-case analysis of Beijing Culture and Huayi Brothers as typical cases, using methods such as case analysis, event study, Aggregate Management Performance Score Model (AMPS) model, and predictive analysis, and in combination with industry characteristics and policy environments, deeply analyzes the causes and consequences of goodwill impairment. The research finds that the optimistic assumptions of the income approach in high-premium mergers and acquisitions, the performance fluctuations of the target companies, and the impact of industry environments jointly trigger goodwill impairment, not only causing a sudden drop in enterprise performance but also having a profound impact on the development of the industry. The research suggests that a long-term risk prevention and control mechanism for the industry should be constructed by optimizing valuation methods, strengthening regulatory disclosure, and promoting digital transformation.