Василенко Роман Викторович
Efficiency of Market Perception of M&As Operating Performance in Developed and Emerging Capital Markets
Стратегическое управление финансами фирмы
The majority of papers, that investigate the performance of M&A deals, consider one of the methods separately, mostly event or accounting studies with only developed markets covered with both methods in one paper at the same time. Moreover, neither of the papers consider the comparison of market perception in developed and emerging capital markets. In this study, we investigate efficiency of market perception of M&As operating performance based on a sample of 428 transactions (353 from developed markets, 75 from emerging ones) during the period of 2002-2013. We apply event study to evaluate market reaction to M&A deals announcements and accounting study to measure M&A deals operating performance. Our results show that the inves-tor’s reaction at announcement date is consistent with the real operational improvement of the company or its absence after the merger in developed markets, while investors’ perception in emerging markets is not correct. Differences between countries could be explained by significant information asymmetry in emerging markets comparing with developed ones. Low level of trans-parency increases risks of wrong investment decisions and create barriers for investors’ correct perception of available information.