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The Effects of Outbound Mergers and Acquisitions (M&As) on Chinese Automobile Corporations’ Performance: A Case Study of Geely’s Acquisition of Volvo

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  • Ziming Meng
  • Xin Wang

Abstract

Pursuing M&As is an important growth strategy for many companies. This study examines whether Geely has succeeded in improving the acquirer’s performance as expected over a long-time span. In particular, it- (i) assesses the short-term and long-term post-acquisition firm performance respectively; and (ii) establishes a post-acquisition performance evaluation framework for Chinese automobile companies’ overseas M&As based on their motivations. By investigating the influence of acquiring Volvo on Geely’s performance as a case of outbound M&A during the financial crisis, this research will serve as an example of evaluating M&As as a mechanism for corporate growth in the automobile industry of China or other emerging economies.

Suggested Citation

  • Ziming Meng & Xin Wang, 2021. "The Effects of Outbound Mergers and Acquisitions (M&As) on Chinese Automobile Corporations’ Performance: A Case Study of Geely’s Acquisition of Volvo," International Business Research, Canadian Center of Science and Education, vol. 14(7), pages 1-36, July.
    • Handle: RePEc:ibn:ibrjnl:v:14:y:2021:i:7:p:36
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    References listed on IDEAS

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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