Determinants of Cross-Border M&A Performance in Emerging Capital Markets

This paper evaluated and compared the performance of cross-border mergers and acquisitions completed by companies from the BRICS when buying companies in developed and emerging markets. A regression model was also constructed to determine the effect of variables on performance. The sample comprised 242 transactions for the period from 2009 to 2017. The received accumulated abnormal returns on the average has a positive result – it speaks about the effectiveness of transactions. It is also established that the purchase of companies from countries from developed markets is more effective than buying companies from emerging markets. The second objective of the work was to assess the impact of the level of political stability and government quality in the country of the target company on the performance of the transaction. The results of regression analysis showed no significant effect of these variables on efficiency.