Impact of Joint Venture, Merger and Acquisition Deals in Russia on Shareholders' Wealth in Foreign Companies

Abstract

Goal: to assess from short term perspective the impact of announcements of joint ventures, merger and acquisition deals with Russian companies on the shareholders’ wealth of foreign companies in terms of strength and positivity or negativity. Tasks: Set up hypotheses about the level of the effect of joint venture, M&A deals on foreign companies. Specify the criteria for “Shareholders’ wealth”. Gather data which represents the effect of joint venture, M&A deals on shareholders’ wealth. Process the data in order to find out the impact. Make conclusions about the impact of joint venture, merger and acquisition deals on shareholders’ wealth. Result: Announcements of joint venture, merger and acquisition deals with Russian companies are proven to have a positive impact on shareholders’ wealth in short term.