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The Impact of Mergers and Acquisitions in FinTech Industry on Bidder's Share Value
In this paper we examined the impact of mergers and acquisitions in the sphere of financial technologies on bidder's share value. We determined factors that have a significant impact on the value of cumulative abnormal return for bidders. The method of event analysis was used to study the effectiveness of the acquisition of financial companies. In the framework of this work, companies with the most active M & A transactions were selected, namely developed countries (USA, Canada, Europe) and developing (China and India). In the course of the study, the positive impact of announcement of mergers and acquisitions on the value of companies-buyers (+ 1.12% on the window [0, 1], 1% level of significance) was revealed. In the work it was proved that such transactions are more profitable for bidders of developed countries. It was also revealed that for companies that do not belong to the financial technology industry, M & A transactions were more profitable than for fintech-companies. The study of the influence of the expansion strategy has proved that international transactions in developed markets are estimated higher than local. Despite the positive excess profitability for the companies-buyers on the event window [0, 1], in the long run buyer does not receive excess profitability. Also in this paper factors that have a significant impact on the CAR value, the effective tax rate indicator and the company's expenditure on R & D, were revealed. Among the sectoral factors, a significant positive influence is exerted by the belonging of the target company to the segment engaged in money transfers and commercial lending.