Motivation and Efficiency of M&A Transactions in the Banking Sector of Developing Countries

This paper represents the comprehensive empirical study about how mergers and acquisitions have changed against the backdrop of more complicated business conditions. However, it is not clear how the current situation influences mergers and acquisitions, since investors who have shares in companies that conduct the transaction can perceive the deal as a positive signal to fight against the complicated conditions or, conversely, understand that the target company is too weak that it sells herself at a certain price. That is why this work is devoted to the analysis of these transactions, namely, their development against the backdrop of existing circumstances. A quantitative analysis method and a regression analysis method are used in this paper to implement the problems described above and to verify the hypotheses. This work contributes not only to the scientific field of application, analyzing how mergers and acquisitions in the Russian banking system are changing under the influence of external conditions, but also in the practical sphere of application, since the results of the analysis make it possible to understand how the regulation of the Russian banking industry by the Central Bank of the Russian Federation has an impact on the activities of financial institutions in the market of mergers and acquisitions. The main result of this work is that given the current situation on the market mergers and acquisitions have deteriorated in the quantitative and qualitative level.