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Article

Сделки слияний и поглощений и стоимость финансовых компаний на развитых европейских рынках капитала

Importance. M&A deals often have different effect on value of transacting companies. M&A announcements build value for special-purpose entities almost every time. They can bring the acquirers’ value up or down in line with certain factors. We investigate mergers and acquisitions assuming that they build value of acquirers, and focusing on how the stock market responds to M&A announcements. Objectives. The research evaluates how M&A in the financial sector influence value of acquirers. The research examines the efficiency of such deals initiated by the West European companies before and after the crisis period of 2000 through 2013. Methods. We examine how the stock market responds to M&A announcements, using the event study analysis. Based on linear regression, we identify key factors that impact on the efficiency of deals in the financial sector. The sample comprises 72 instances. Results. M&A have a negative impact on value of acquirers from developed economies as of the M&A announcement date. National focus of agreements and the size of acquirers positively correlate with cumulative abnormal return of acquirers from developed European economies. Conclusions and Relevance. The outcome should be prudently construed as the real return may not correlate with market expectations, though share prices reflect market expectations of the future cash flows. We conclude that consequences of M&A in banking are visible and static or invisible and dynamic. The latter ones include restructuring and changes in lending practices, which significantly impact on the return of a combined company. However, such consequences are difficult to forecast when M&A announcements just appear.