Determinants of M&A Deals Effective's in BRICS Countries

In this research the author analyses the market reaction to M&A deals conducted within BRICS countries, specifically focusing on cumulative abnormal returns of the buy-side companies' share prices. The paper provides a literature review and empirical study based on common methodology and variables generally used for covering the issue. Particular emphasis is paid to investigation of financial markets variables impact on M&A deals performance, given the assumption that chosen determinants could be interpreted as proxy variables for investment risk estimation by market participants. One of the empirical research conclusions implies that volatility indicators have a significant influence on cumulative abnormal returns of the buyer’s stock price arising in the course of deal announcement period. It is noteworthy that an upsurge of local market volatility, according to the author’s estimations, could result in cumulative abnormal returns rising as well, which suggests that investors could positively evaluate the deals conducted within periods of elevated volatility. This outcome is inconsistent with what was expected according to originally formulated hypotheses, as well as sings of some of the control variab