Evaluation of the Reaction of the Stock Market to Information on Mergers and Acquisitions in the Oil and Gas, Metallurgical and IT Sectors in the Russian Federation

The theme of this work: “Based on current trends in Russia and the world, more and more enterprises are striving to pool resources and capital in order to achieve common goals. The Russian M&A market follows these trends, as the number and amount of M&A transactions is growing every year, even during periods of crisis. The aim of the study is to identify what effect the announcement of a merger and acquisition transaction has on the profitability of the company's shares, as well as to identify the factors that influenced the profitability. The work examines the three largest and fastest growing industries in the Russian economy and the M&A market: metallurgy, oil and gas and IT industries. The research database is composed of transactions, information about which was taken from the Bureau Van Dijk database. The main hypothesis of the study is that mergers and acquisitions have a positive effect on company stocks. The results showed that the effect of transactions in most cases is really positive. In addition, we have identified the dependence of the excess stock return on the amount of the transaction and the sector in which it is carried out.