Research on Goodwill Measurement Models Based on Real Options Theory

Xiaoyue Chen

doi:10.54097/brjvs235

Authors

Xiaoyue Chen

DOI:

https://doi.org/10.54097/brjvs235

Keywords:

Real options; corporate capabilities; goodwill measurement.

Abstract

High-premium mergers and acquisitions often result in high goodwill and associated impairment risks, which can significantly impact a company's equity and the quality of its accounting information, exacerbate fluctuations in operating performance, and mislead investors' decision-making. Therefore, accurately measuring goodwill and its impairment amounts is of particular importance to both companies and the market. Addressing the shortcomings of the current goodwill initial measurement methods used in practice, this study proposes to incorporate real options theory to improve the cut difference method and establish a modified coefficient assessment system based on corporate capabilities and industry characteristics to accurately evaluate a company's goodwill and impairment amounts. This approach aims to provide dual theoretical support and practical guidance for merger and acquisition decisions and goodwill management in the electronics manufacturing industry.

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