Influence of Industry Characteristics on M&A Deals Efficiency in Developing and Developed Countries

This paper explores impact of industry characteristics on the effectiveness of M&A deals. Sample includes data on M&A transactions in the United States, Australia, India and Russia from 2008 to 2018. The results show that acquisition of companies from service sector is more efficient than from industry sector for any level of economic development of the target-firm’s country; growth rate of the target-firm’s industry has a positive impact on the effeciency of M&A deals only in developing countries, and innovation level of the target-firm’s industry has a negative impact on the effectiveness of M&A only in developed countries. At the same time, the growth rate of the target-firm’s industry and its belonging to the service sector has a positive impact on the efficiency of both international and domestic transactions, while the size of the industry and its level of innovations are significant only for international deals – the impact of the industry’s size is positive, while the impact of innovation level is negative.