The Effectiveness of M&A in High-Tech Industries in Emerging Markets

In this work, a study was conducted, the purpose of which was to identify factors that influence the effectiveness of mergers and acquisitions in high-tech industries in emerging capital markets. The object of this work are mergers and acquisitions in high-tech industries in the BRICS countries. At the same time, the author of the work used the event method to empirically evaluate the effectiveness of mergers and acquisitions in high-tech industries in the BRICS countries, as well as methods of correlation analysis and regression analysis. As a result of the work, the author made a number of conclusions. Firstly, the current market trends of mergers and acquisitions transform the traditional goals and motives for the implementation of these transactions by market participants. Secondly, the traditional approaches to assessing the value of the acquired company during the M&A transaction allow determining the value of the organization’s assets from different perspectives, which makes it possible to widely use the considered approaches in mergers and acquisitions in various fields, nevertheless, it is necessary to use universal approaches that also combine mechanisms calculation of uncertain indicators. Thirdly, the effectiveness of high-tech transactions can be determined by such determinants as the experience of allied relations with the purchasing company and the acquired company, the identity of the scope of investors, the degree of identity, etc. Fourth, based on the analysis of the literature, we put forward eight hypotheses research. We have formed a sample that consists of mergers and acquisitions completed in the BRICS countries for 2015-2019. in high-tech industries. The final sample size is 73 transactions. Fifth, the calculations showed that the average accumulated excess return for the analyzed transactions amounted to 0.0628 (6.3%). Sixth, according to the constructed model, the effectiveness of mergers and acquisitions in the high-tech industries of the BRICS countries is significantly affected by the identity of the industries and the size of the absorbing company. These determinants are closely related to the synergy effect. The model is significant at 5%, according to the F-test. The volume of this work was 41 pages, 33 sources were used, in the course there are 5 tables and 4 figures.