Analysis of the Effectiveness of Transnational Mergers and Acquisitions in Emerging Capital Markets

Abstract

The aim of this work is to analyze the impact of M&A transactions in the oil and gas industry between the Russian and foreign companies. The subject of research is the relationship between the announcement of the forthcoming integration of the transaction and the performance of the acquirer. The study focuses on the impact of the announcement of the national and transnational M&A deals and on the change of market value of shares of the acquiring company in the oil and gas sector. The methodological basis of the study selected the market approach in the short term. An analysis of the target and absorbing the oil and gas companies is supplemented by the assessment of R&D intensity, which takes into account the dynamics of the registered patents and the certificates for useful models. In this work author calculates and analyses the indicators: cumulative abnormal return and the number of transitioning intellectual property for oil and gas companies, which involved in M&A transactions in the Northwest region of the Russian Federation in the period from 1999 to 2015. This analysis of effectiveness of mergers and acquisitions oil and gas companies in the Northwest region revealed that the domestic assets, which were previously owned by foreign companies, now come under the control of Russian enterprises. The results of this research will contribute to the study of the effectiveness of M&A transactions in the oil and gas industry and can find an application in the Antimonopoly activities of the Federal Antimonopoly service of the Russian Federation. Refs 33. Tables 3.