M&A and Divestitures: Efficiency and Impact on Stock Market

The aim of this work is to study and evaluate the effectiveness of restructuring of acquiring companies in both developed and developing countries. The object of this study is M&A transactions in developed and emerging markets for the period 2013–2017. The subject of the study is the aggregated abnormal returns of buying companies in M&A transactions in developed and emerging markets for the period 2013–2017. In this paper, the main methods for assessing the effectiveness of company restructuring are the event analysis method, aimed at assessing the change in the company's share price during the event window, as well as the financial reporting analysis method, by means of which certain interrelations of changes in the financial position of the company in response to restructuring the company through an M&A transaction. Methods for assessing the effectiveness of company restructuring in this paper are considered in terms of short-term and long-term effects.