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The Impact of Macroeconomic Factors on the Activity of M&A Deals with Russian Companies
This study aims to examine the key macroeconomic determinants of mergers and acquisitions activity with Russian companies over 2000-2018 years and to figure out what factors have the greatest impact on it. In order to get to the results, there was a vector autoregressive model applied with the number of domestic and cross border acquisitions as the main dependent variable and GDP, RTS index, money supply (M2), exchange rate, key rate, inflation, level of economic freedom and sanctions imposition as independent variables. Particularly, this paper finds that there is a long-run relationship between merger activity in Russia and the primary macroeconomic factors, while the volume of GDP and RTS index dynamics tend to make the most contribution to the changes in Russian M&A activity.