Valuating Goodwill of Cultural Enterprises Using Wavelet Neural Network

Abstract

Goodwill is one of the most valuable intangible assets of companies. Typically, only when some financial behaviors occur, for example, the proper rights of assets to be transferred or invested as shares, it is time to evaluate the value of goodwill. However, we assume that it is necessary to periodically evaluate the goodwill during the normal business period for the sake of maintaining and improving the commercial goodwill of enterprises. To this end, we focus on the problem of valuating the goodwill. Typically, the process of evaluating the goodwill involves two steps. First, a set of factors associated with the goodwill valuation should be abstracted. Second, above factors should be integrated with a proper method. To more precisely value the goodwill, in this paper we propose to employ a Wavelet Neural Network (WNN) based method to train a model based on a series of indicators. Our experiments prove the feasibility and efficiency of our method.