Factors Affecting the Effectiveness of M & A Transactions in the Retail Market

Abstract The purpose of this work is to identify the determinants of the effeciency of mergers and acquisitions of companies in the retail market. The object of the research are mergers and acquisitions M&A in retail. The research method is event study. Nine factors were selected in the work, the impact on the effeciency which was evaluated during the research process: deal type, sum of deal, deal size to capitalization, payment method, number of employees, cross-border factor, revenue, experience in M&A deals and market share. The sample consist of 484 mergers and acquisitions which were announced between 2000 and 2018 in the retail industry. The cumulative abnormal returns were calculated for the three studied windows (-20; +20), (-10; +10) and (-1; +1). The results showed the positive impact of transaction announcement on stock returns. After the calculations, significant factors were identified - all factors are significant except the transaction amount and the number of employees. Keywords: event analysis, M&A transactions, the effectiveness of M&A transactions, factors influencing the efficiency, retail.