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

摘要

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.