Study On The Motivation And Economic Consequences Of Frequent Overseas M&A About China’s Automobile Enterprises

In recent years,Chinese enterprises’ overseas mergers and acquisitions have become more and more intense,and many scholars have also conducted lots of studies on the motivation and the economic consequences of mergers and acquisitions.But conclusions are not completely consistent.Some literature focuses on the economic consequences of a single acquisition.But in practice,enterprise’s frequent overseas acquisition behavior is increasing.However,there are few researches on Chinese enterprises’ overseas M&A.This paper studies the frequent overseas M&A of Geely holding group,which is the enrichment and expansion of the research on the motivation and economic consequences of overseas M&A.It is conducive to the effective test of whether Geely holding group achieves the acquisition target and has a strong practical guiding significance for Chinese enterprises to go abroad to participate in international competition.First of all,according to the relevant literature,identify objects and problems to be solved.Then,analyze the status of Chinese automobile enterprises’ frequent overseas M&A and make theoretical analysis based on the theories related to the motives and economic consequences.On this basis,take Geely holding group as an example to study the motivation and economic consequences of its frequent overseas M&A.It is found in this paper that Geely holding group has sought for foreign technical knowledge and other key resources to improve product and create new products.it gradually expands product sales.It can obtain synergistic effect through the integration of enterprises to achieve the development of enterprises.To be specific,all long-term financial indicators show a u-shaped trend and the comprehensive financial indicators based on factor analysis also reach the same conclusion.Through the analysis of short-term economic consequences,Geely holding group has carried out overseas M&A for many times in the past nine years.In the first six times,the CAR presented a law of decline,while in the seventh time,the CAR increased to positive.This is similar to the long-term financial performance.Finally,this paper puts forward policy Suggestions to improve the overseas M&A of automobile enterprises,which is helpful for China’s automobile enterprises to go abroad and improve the success rate of overseas M&A.