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Author Chandera, Yane ♦ Widjojo, Handyanto
Source Directory of Open Access Journals (DOAJ)
Content type Text
Publisher Prasetiya Mulya Publishing
File Format HTM / HTML
Date Created 2016-12-01
Copyright Year ©2012
Language English
Subject Domain (in LCC) HF5001-6182 ♦ HG1-9999
Subject Keyword Business ♦ Commerce ♦ Event study ♦ Geely ♦ Value creation ♦ Cross border transaction ♦ China ♦ Management ♦ Abnormal return ♦ Social Sciences ♦ Brand perception ♦ Acquisition ♦ Automotive ♦ Cumulative abnormal return ♦ Volvo ♦ Finance
Abstract This paper examines the value creation on the acquisition of Volvo Car Corp by Zhejiang Geely Holding Group. The acquisition of Volvo by Geely became an interesting topic to discuss since it was the first time in automotive industry that a Chinese company acquired an international company with a considerably high transaction amount. The paper examines the short term value creation using event study to calculate abnormal returns of each company’s stock during the announcement period and measuring the significance of the cumulative abnormal return. The findings are consistent with previous studies over the years which have shown that most acquisitions fail to add value for shareholders in the acquiring company. The paper discusses the broad managerial implications of the findings this paper discussion on marketing aspect after the acquisition by integrating two different brand perceptions.
ISSN 20896271
Age Range 18 to 22 years ♦ above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article
Publisher Date 2012-08-01
e-ISSN 20896271
Journal International Research Journal of Business Studies
Volume Number 5
Issue Number 2
Page Count 15
Starting Page 129
Ending Page 143

Source: Directory of Open Access Journals (DOAJ)