Financial risk in cross-border M&A: The case of Geely Group-Volvo merger

The aim of this work is to shed light on cross-border mergers and acquisitions (M&As), a strategy mainly used in many companies during the last few decades. In recent years, with the sustained development of China's economy and the continuous enhancement of Chinese enterprises' own strength, cross-border M&A has become an important way for Chinese enterprises to expand their market share and enhance international influence. But at present, most Chinese companies do not have the experience of cross-border M&A, and when making plans they often overlooked the possible financial risks, and cannot take effective preventive measures, leading to the failure of mergers and acquisitions. This paper focuses on the financial risk in cross-border M&A, and analyzes the causes of these risks, and puts forward the corresponding preventive measures. It has significant implications to help our enterprises enhance the ability of identifying and guarding against financial risks in cross-border M&A.