Analyzing The Goodwill Phenomenon in Mergers and Acquisitions: A Case Study on Junsheng Electronics Group

Research Article
Open access

Analyzing The Goodwill Phenomenon in Mergers and Acquisitions: A Case Study on Junsheng Electronics Group

Hongrui Chen 1*
  • 1 Tianjin University of Finance and Economics    
  • *corresponding author lanlanwaller@stu.tjufe.edu.cn
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/29/20231388
AEMPS Vol.29
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-079-0
ISBN (Online): 978-1-83558-080-6

Abstract

New-energy vehicles are the main direction and goal of the future development of the automotive industry. This article explored the issue of goodwill in mergers and acquisitions with the help of data from Junsheng Electronics, a leading supplier in the new energy automotive industry, and focuses on mergers and acquisitions. Based on the analysis of previous analysis data and internal and external strategic analysis of the enterprise, the following conclusions were drawn: due to the comprehensive strength problem of the insufficient technological content and scale of the enterprise itself, the duality of strategic direction should be considered in external exploration; bad merger and acquisition transactions yielded by the blind confidence of enterprise management should enhance the quality and objectivity of management; and due to the lack of enterprise integration capabilities and the lack of good synergy, suggestions are given for adjusting the independent, dependent, two-stage merger and acquisition (M&A) relationship. The significance of this investigation was to provide certain solutions for enterprises facing merger and acquisition transactions or bearing high goodwill issues, enhance objectivity and macro perspective in future strategic decisions, and reduce transaction risks.

Keywords:

Junsheng Electronic, merger goodwill ,synergies, long-term performance

Chen,H. (2023). Analyzing The Goodwill Phenomenon in Mergers and Acquisitions: A Case Study on Junsheng Electronics Group. Advances in Economics, Management and Political Sciences,29,195-201.
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References

[1]. Wei, Z.H., Zhu, C.Y.: Whether excess goodwill has become a business burden -- an explanation based on the perspective of product market competitiveness Journal. China Industrial Economy, 2019 (11),174-192.(2019)

[2]. Xie, H.M., Zhang, Y., Liu, Y., Cheng, C.: Value creation in the continuous cross-border mergers and acquisitions of enterprises in emerging economies: the case of Junsheng Group Journal. Management World, 2019, 35 (05): 161-178+200. (2019)

[3]. Zhang, N.J.: Don't let goodwill become the "new clothes of the emperor" - a rational analysis of goodwill treatment Journal. Friends of Accounting, 2018 (18): 2-5.(2018)

[4]. Zheng, H.Y., Liu, Z.Y., Feng, W.D.: Can the merger and acquisition of goodwill improve the company's performance—— Empirical evidence from A-share listed companies Journal. Accounting Research, 2014 (03): 11-17+95.(2014)

[5]. Feng, W.D., Zheng, H.Y.: Research on the measurement and disclosure of goodwill in corporate mergers and acquisitions Journal. Financial Research, 2013 (08): 29-32.(2013)

[6]. Baidu Stock Connect https://gushitong.baidu.com/2023.03.07

[7]. Xia, Y., Shen, H.: Research on the performance of continuous mergers and acquisitions of private enterprises based on short-term and short-term windows -- take Junsheng Electronics as an example Journal. Financial and Accounting Communication, 2018 (11): 3-8. (2018)

[8]. Li, D.M., Ye, J.F., Lv, S.Q., Ceng, S.: Management overconfidence, property rights nature, and merger goodwill Journal. Accounting Research, 2018 (10): 50-57 (2018)

[9]. Zhang, L.L., Liu, Y.C.: Construction of risk analysis and evaluation system for enterprise merger and acquisition technology integration Journal. Learning Forum, 2018 (05): 41-46.(2018)

[10]. Wang, X.T., Cheng, B.W.: The coupling mechanism of resource integration, collaborative innovation, and enterprise dynamic capabilities Journal. Scientific Research Management, 2014,35 (04): 44-50. (2014)

[11]. Rui, Z.Y., Luo, J.L., Gan, J.X.: Breakthrough of Innovation Dilemma of New Ventures: External Search Duality and Its Matching with Enterprise Knowledge Base Journal. Nankai Management Review, 2017,20 (05): 155-164.(2017)

[12]. He, H.Q., Li, B.J.: Do internal control deficiencies exacerbate the issue of goodwill impairment in mergers and acquisitions? A study based on property rights, marketization, and the regulatory role of institutional investors Journal. Monthly Journal of Finance and Accounting, 2020 (02): 75-82.(2020)

[13]. Song, S.Q., Dai, S.J.: Managers' overconfidence, M&A types and M&A performance Journal. Macroeconomic Research, 2015 (05): 139-149.(2015)

[14]. Huang, M.L., Zhang, M., Pi, S.L., Lu,S.X.: Research on the relationship between the integration configuration and the performance of reverse cross-border mergers and acquisitions in Chinese enterprises Journal. Journal of Management, 2019, 16 (05): 656-664.(2019)

[15]. Du, J., Zheng, Q.X., Cheng, B.: Insist on independence or seek dependence? Research on the integration strategy of "snake swallowing elephant" cross-border M&A Journal. Nankai Management Review, 2020,23 (06): 16-26.(2020)


Cite this article

Chen,H. (2023). Analyzing The Goodwill Phenomenon in Mergers and Acquisitions: A Case Study on Junsheng Electronics Group. Advances in Economics, Management and Political Sciences,29,195-201.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN:978-1-83558-079-0(Print) / 978-1-83558-080-6(Online)
Editor:Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.29
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. Wei, Z.H., Zhu, C.Y.: Whether excess goodwill has become a business burden -- an explanation based on the perspective of product market competitiveness Journal. China Industrial Economy, 2019 (11),174-192.(2019)

[2]. Xie, H.M., Zhang, Y., Liu, Y., Cheng, C.: Value creation in the continuous cross-border mergers and acquisitions of enterprises in emerging economies: the case of Junsheng Group Journal. Management World, 2019, 35 (05): 161-178+200. (2019)

[3]. Zhang, N.J.: Don't let goodwill become the "new clothes of the emperor" - a rational analysis of goodwill treatment Journal. Friends of Accounting, 2018 (18): 2-5.(2018)

[4]. Zheng, H.Y., Liu, Z.Y., Feng, W.D.: Can the merger and acquisition of goodwill improve the company's performance—— Empirical evidence from A-share listed companies Journal. Accounting Research, 2014 (03): 11-17+95.(2014)

[5]. Feng, W.D., Zheng, H.Y.: Research on the measurement and disclosure of goodwill in corporate mergers and acquisitions Journal. Financial Research, 2013 (08): 29-32.(2013)

[6]. Baidu Stock Connect https://gushitong.baidu.com/2023.03.07

[7]. Xia, Y., Shen, H.: Research on the performance of continuous mergers and acquisitions of private enterprises based on short-term and short-term windows -- take Junsheng Electronics as an example Journal. Financial and Accounting Communication, 2018 (11): 3-8. (2018)

[8]. Li, D.M., Ye, J.F., Lv, S.Q., Ceng, S.: Management overconfidence, property rights nature, and merger goodwill Journal. Accounting Research, 2018 (10): 50-57 (2018)

[9]. Zhang, L.L., Liu, Y.C.: Construction of risk analysis and evaluation system for enterprise merger and acquisition technology integration Journal. Learning Forum, 2018 (05): 41-46.(2018)

[10]. Wang, X.T., Cheng, B.W.: The coupling mechanism of resource integration, collaborative innovation, and enterprise dynamic capabilities Journal. Scientific Research Management, 2014,35 (04): 44-50. (2014)

[11]. Rui, Z.Y., Luo, J.L., Gan, J.X.: Breakthrough of Innovation Dilemma of New Ventures: External Search Duality and Its Matching with Enterprise Knowledge Base Journal. Nankai Management Review, 2017,20 (05): 155-164.(2017)

[12]. He, H.Q., Li, B.J.: Do internal control deficiencies exacerbate the issue of goodwill impairment in mergers and acquisitions? A study based on property rights, marketization, and the regulatory role of institutional investors Journal. Monthly Journal of Finance and Accounting, 2020 (02): 75-82.(2020)

[13]. Song, S.Q., Dai, S.J.: Managers' overconfidence, M&A types and M&A performance Journal. Macroeconomic Research, 2015 (05): 139-149.(2015)

[14]. Huang, M.L., Zhang, M., Pi, S.L., Lu,S.X.: Research on the relationship between the integration configuration and the performance of reverse cross-border mergers and acquisitions in Chinese enterprises Journal. Journal of Management, 2019, 16 (05): 656-664.(2019)

[15]. Du, J., Zheng, Q.X., Cheng, B.: Insist on independence or seek dependence? Research on the integration strategy of "snake swallowing elephant" cross-border M&A Journal. Nankai Management Review, 2020,23 (06): 16-26.(2020)