Evaluation of the Effectiveness of Mergers and Acquisitions in Emerging Capital Markets

Currently the number of mergers and acquisitions increases worldwide, opening for their participants new opportunities of expansion, synergy and financial optimization. Alongside with this process researchers still try to provide an unequivocal answer to the question, how mergers and acquisitions really affect company performance. Numerous approaches are developed to measure the efficiency of integration deals, but all of them provide controversial results for different samples, time-periods and propositions. At the same time the focus of modern researches is usually connected with developed markets, but less evidence is available for emerging ones. The present study is aimed at M&A performance investigation on developing markets, including Russian Federation. The research is based on empirical information from Bureau Van Dijk database about integration deals in BRICS countries in the period of 2014-2018. We prove the efficiency of M&A deals by means of event study using cumulative abnormal return and indicate factors influencing it.