Performance of M&A Deals Based on Value-Based and Accounting Approaches: Evidence from Emerging and Developed Capital Markets

Mergers and acquisitions (M&A) is one of the most scrutinized topic in corporate finance. In this thesis we examined M&A performance of deals, initiated in developed and emerging markets. We applied two long-term approaches: accounting-based approach and Economic profit approach. The sample consists of 153 deals, initiated by acquirers from Western Europe, and 125 deals, initiated by acquirers from emerging markets, completed between 2002 and 2013. Based on economic profit concept we found out that M&A performance distinguish between developed and emerging capital markets: deals in developed markets create value while deals in emerging markets destroy it. Besides, based on accounting and economic profit methods we resulted in positive impact of high tech target on M&A performance only in emerging markets, and obtained positive impact of crisis on M&A performance in both developed and emerging markets.