Post-merger stock performance of acquiring companies: the evidence from the Russian market

Abstract

The main goal of the current research was to identify whether Russian traded acquiring companies that took part in M&A deals in the period of 2007 to 2013 deliver abnormal returns to their shareholders. The Calendar-Time Abnormal Returns Portfolio Approach was used in this study. Two Rebalanced Event Portfolios were constructed on the basis of the type of payment used in the deals: Cash and Non-cash Rebalanced Event Portfolios. The conclusion of the research is that Russian traded acquiring companies deliver significant negative long-term abnormal returns and that cash method of payment on average deliver better results than other methods of payment.