M&A’s Impact Estimation In Mining And Metallurgy Industry On The Stock Market Dynamics

Master's thesis is devoted to the issues related to the efficiency of mergers and acquisitions in the mining industry. The aim of the work is to evaluate the effectiveness of mergers and acquisitions in the mining sector, including via the stock market. The object of this study are of the mining industry, and the subject - the quotations of shares of companies and their profitability in a period of time. The first chapter is devoted to the description of the sector of mining and metallurgical industry in the context of M&A transactions, the review theoretical aspects of the efficiency of M&A deals in the mining and metallurgical industry and their impact on the dynamics of the stock market, the review of the motives, objectives M&A transactions carried out in the sector. The second chapter provides an overview of the influence of methods of analysis M&A deals on the dynamics of the stock market (the cumulative excess return on the basis of the market model, event analysis, comparison of financial indicators) and the development of methodologies for further analysis. The third chapter is devoted to assessing the impact of M&A deals on the dynamics of the stock market in the mining industry for CAR calculation using event analysis, the calculation of the efficiency of M&A transactions on the basis of changes in financial performance, as well as the interpretation of the results. The obtained results of calculations by the example of the mining industry clearly indicate the negative perception of the market transactions, the deterioration of financial performance of companies in the medium term, as well as a decrease in the yield on the sector index.