The Enterprise Merger and Acquisition Effect on Firm Value—A Discussion on Geely’s Acquisition of Volvo for Example


With the development of market economy, mergers and acquisitions as an enterprise can accelerate the rational allocation of resources, and optimize the allocation of enterprise. Enterprise resource conservation, which is an important means to realize the enterprise’s low-cost expansion in the market, has been more and more used by enterprises. In this paper, through the study of Geely’s acquisition of Volvo, we understand the effect of merger and acquisition of enterprises, which is based on the analysis of financial condition before and after Geely Automobile, at great risk to the meaning of low-end brand merging and acquiring high-end car brand.

Share and Cite:

Gao, Z. (2015) The Enterprise Merger and Acquisition Effect on Firm Value—A Discussion on Geely’s Acquisition of Volvo for Example. Modern Economy, 6, 717-726. doi: 10.4236/me.2015.66068.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Wang, Y. (2012) Enterprise Transnational Merger and Acquisition Risk Identification and Prevention. Thesis, Southwest University of Finance and Economics, Chengdu, 2012.
[2] Zhang, R.-G., Yin, Y.B. and Zhou, L. (2012) Growth of Investment and Financing of Enterprise M&A Strategy Analysis, Geely Automobile, for Example. Journal of Central University of Finance and Economics, 1, 71-75.
[3] Tang, C. and Wu, G. (2012) Geely Volvo Cross-Border M&A Research Review. Journal of Jinling Institute of Technology (Social Science Edition), 11, 5-8.
[4] Lin, C.-L. (2014) Saic with Geely Cross-Border M&A Case Analysis. Thesis, Jilin University, Jilin.
[5] Xing, Q. (2014) Chinese Enterprises Transnational Mergers and Acquisitions of Financial Integration Research. Thesis, Hebei Normal University, Shijiangzhuang.
[6] Huang, Q. (2013) Giovanni Cobolli Gigli Acquisition Volvo’s Investment Strategy Analysis. Thesis, Liaoning University, Shenyang.
[7] Gao, L.S. (2013) M&A Financial Performance Analysis, Geely’s Acquisition of Volvo, for Example. Friends of the Accounting, 28, 65-68.
[8] Guo, Y.-T. (2012) The Altar. Countries M&A Financing Problem Research. Thesis, Tianjin Commercial University, Tianjin.
[9] Wang, H.-R. (2013) Chinese Enterprises Overseas M&A Impact on Core Competitiveness Research. Thesis, Liaoning University, Shenyang.
[10] Chen, R. (2014) Geely Volvo Cross-Border M&A Performance Study. Journal of Management, 12, 136-137.

Copyright © 2023 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.