Бутина Ксения Юрьевна
An Efficiency of Mergers and Acquisitions across Business Cycles in BRICS Countries
Стратегическое управление финансами фирмы
The present paper is devoted to the examination of the relationships between business cycles and efficiency of M&A transactions in BRICS countries. In order to determine the quality of M&A deals the event study was applied. Three proxy-variables are used to identify stages of business cycles. Real GDP growth rate is used to characterize general trends in macroeconomics; stock market indices and intensity of merger market are applied to describe the trends in financial markets. The analysis of the relationships between efficiency of M&A transactions and chosen determinants allows to understand which indicators the investors are sensitive to. As a result, M&A deals create value during economic expansion in India. The opposite results were obtained for Chinese and Russian companies. The stock market trends affect positively the M&A efficiency in Russia and India. The positive relationships between activity in merger market and M&A efficiency are obtained for Chinese, Russian and Indian companies.