Research On The Performance Evaluation Of Cross-Border M&A Of Chinese Enterprises Under The Background Of"Belt And Road"

With the improvement of China's comprehensive national strength and the growing development of enterprises,more and more Chinese enterprises begin to go abroad to invest and expand business in overseas markets,"going out" has become a major trend in the development of Chinese enterprises.China's "the Belt and Road Initiatives" launched in 2013 has a profound impact on the globalization of China's enterprises and has brought a new round of China's "going global" opportunities.The Belt and Road Initiatives,is the main body of the case.This case is a cross-border M & a event in China's automobile industry in June 2017.The Belt and Road Initiatives China,is the leading car manufacturer in China.Proton is a subsidiary of DRB-HICOM,a listed company in Malaysia.Malaysia is also a partner in the "one belt" road.Taking China's the Belt and Road Initiatives background as the breakthrough point,this paper first introduces the current situation of cross-border mergers and acquisitions of Chinese enterprises in recent years.Then it analyzes the performance of M & A from three dimensions.First,we use the event analysis method to analyze the market response.Secondly,the paper analyzes the performance of M & A from four aspects: solvency,operating ability,profitability and growth ability.Finally,on the basis of using the above indicators to analyze the performance of M & A,non-financial indicators are used to get objective and effective performance analysis results.It is found that from the perspective of market response,the stock price of Geely's cross-border M & A rises in the short term,and the excess return rate also gets a certain degree of improvement,which shows that the M & A is favored by the capital market,and the short-term wealth effect to shareholders is also obvious.From the perspective of financial indicators,the business is in good condition.Although the debt pressure is large,compared with the level of the same industry,it is within a reasonable range.From the perspective of non-financial indicators,Geely acquired overseas market share after cross-border M& A,complemented each other's business areas,and built an industrial coordination base.China's the Belt and Road Initiatives,and the Belt and Road Initiatives,is also proposed to provide a reference for the later to follow the "one belt and one way" initiative.