Corporate Governance Influence on M&A Decisions for Companies in BRIC Сountries

The master thesis investigates influence of corporate governance fundamental characteristics on the probability of acquisition for target companies in BRIC countries (Brazil, Russia, India and China). On a sample of 160 acquired and non-acquired firms (2010-2014) the research finds out peculiarities of corporate governance in BRIC, paying special attention to ownership factor. In contrast with the prior literature, the empirical evidence shows that insiders in a target BRIC company can prevent M&A deal probability only when they have more than 50 % of company’s shares. A more experienced CEO could hamper the acquisition, whereas board independence seems to increase its likelihood. Finally, non-management blockholders have power to accelerate the deal with more than 25% of shares, but only in Russia, India and Brazil. China’s exclusion could be explained by a more dispersed ownership among atomistic minorities in Chinese target companies and larger number of M&A deals on that market.