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Regular version of the site
Of all publications in the section: 250
by name
by year
Kokoreva M., Stepanova A. Journal of Corporate Finance Research. 2012. No. 2. P. 34-44.

In this paper we study the performance effects of capital structure, ownership structure and corporate governance mechanisms of Russian companies. To address the lack of research in corporate performance modeling in emerging markets we contribute to the literature by introducing cluster analysis of financial architecture and market performance of Russian companies. Our idea is to find out the efficient and inefficient types of financial architecture in emerging markets. On the sample of 50+ largest Russian nonfinancial companies within the period of 2005-2010 years we demonstrate existence of three sustainable types of financial architecture in Russia. Using cluster analysis we form the cluster of companies in pre-crisis period and then demonstrate the relationship between the financial architecture type and level of market performance of the company.

Added: Oct 9, 2012
Stepanova A. N., Izabella G. Kazaryan. Journal of Corporate Finance Research. 2017. Vol. 11. No. 4. P. 11-35.

In this article, we consider the relation between capital structure, corporate governance, ownership structure and performance of a company depending on its life cycle stages.  The central aim of this study is to define the most sustainable and effective types of financial architecture by using the cluster and regression analysis. This study describes the three stages of the life cycle of a company: the first stage is growth, followed by maturity and finally the stage of decline, but for our research we only examine companies in the maturity stage. The research includes 11 countries from emerging markets and the primary sample includes 4,675 non-financial companies from 2011 to 2015. As the measure of a company’s performance, we used Tobin’s Q coefficient and total shareholder return. The primary sample was divided into the 3 life cycle stages by using the approach of comparing the growth rates of revenues at the average rate of revenue growth in the industry (Cao, 2010); however, we did not consider the earlier stages of the life cycle due to the specificity of the sample. A cluster analysis was performed on the sample for the growth and maturity stages in order to show the difference between the clusters that depends on the life cycle stages. We analyzed the clusters’ sustainability by regression analysis in each cluster. We described the influence of the financial architecture component on market performance. The results indicate more than one sustainable cluster and demonstrate the influence of the ownership structure, capital structure and the board characteristics on the company’s efficiency depending on the stage of the life cycle, which proves there is a need to take into account the issues of the life cycle. The managers and directors of a company can use results of this study when developing a company’s strategy, especially during the transition period from one life cycle to another.

Added: Jan 31, 2018
Хорин А. Н., Крикунов А. С., Булгаков А. Л. Journal of Corporate Finance Research. 2020. Vol. 14. No. 1. P. 29-38.

The article is devoted to research and evaluation of the usefulness of information disclosed in reports of pharmaceutical companies. The main purpose of the study was to assess the transparency of the metric, inter-firm comparability of nonfinancial reporting data, and to identify the usefulness of the disclosed information for international pharmaceutical companies. The methodological basis of the research is the harmonization of the requirements of business practice standards with financial reporting standards. The paper uses the method of proportional-typical selection of stable structured performance indicators of companies. The authors were not limited to information requests from investors in one country, individual companies, or priority areas of interests of interested and involved persons. The study approach implemented for the multilateral consideration of the views of stakeholders. The research database was compiled by reports of five companies, such as Johnson & Johnson, Novartis AG, Merck KGaA, Sanofi, and Takeda Pharmaceutical Co. Ltd. from the Global Reporting Initiative Database and financial reports of 20 pharmaceutical companies of the Access to Medicine Index System in 2014 and 2016. The result of the study is that the total position of 5 companies moved up from the 8th to the 6th rank. The result of the ratio of growth rates of their total revenue, capitalization and long-term capital is positive when compared with the growth rate of the quality of their disclosure of non-financial indicators. Such relationship is the strongest in attracting long-term capital, followed by growth in capitalization and it is the smallest in growth in revenue. The format of the minimum required set of harmonized indicators helps to increase the confidence of stakeholders in the financial and non-financial information of socially responsible companies. The novelty of the results obtained consists in using a metric expression of the quality of reporting indicators to assess their usefulness in the business practice of companies with a production profile. The results obtained in the course of the study allow us to make a generalized conclusion that useful information generated on the basis of harmonization of structured data from financial and non-financial statements contributes to increasing the level of business activity and its comprehensive performance of all parties involved in the company’s affairs.

Added: Dec 9, 2020
Kokoreva M. S., Stepanova A. N., Alsu Khisamitova. Journal of Corporate Finance Research. 2019. Vol. 13. No. 3. P. 19-34.

The paper contributes to the literature on the management and corporate governance in microfinance institutions. Microfinance market is one of the rare markets with the great representation of women in management and governance. The objective of our paper is to reveal the effects of women’s presence on financial and social performance of microfinance institutions controlling for risks. We develop a model that allows for capturing the gender diversity influence on financial and social performance controlling for risks in Eastern Europe and Central Asia. We focus on the role of women among loan officers, in the boards of directors or the management in the creation of microfinance institutions social or financial performance. The model of two sets of panel data regressions for social and financial performance is tested on the data of 193 microfinance institutions of Eastern Europe and Central Asia for 2010 to 2014 financial years. We find out that female management, CEO and members of boards of directors could increase performance for riskier microfinance institutions with greater stake of portfolio with more than 90 days in arrears. We also state that women on boards try to promote the strategy of large quantity of small loans with greater interest. The social performance of microfinance institutions is crucially determined by the microfinance institutions’ size.  For largest microfinance institutions the questions of social performance lie in the field of boards of directors while for smaller microfinance institutions’ social performance is mostly driven by CEO and staff with the evident positive female role. 

Added: Dec 11, 2019
Ivashkovskaya I., Ponomareva O. Journal of Corporate Finance Research. 2008. Vol. 2. No. 4. P. 5-22.

The article presents the results of empirical an alysis of IPO’s efficiency for companies from Russia and other emerging markets. At first we examine the structure of the issues and the motives for going public. We analyze the interrelations between the motives and the influence of IPO on the operating results of the firms after IPO. In contrast to most empirical papers we find no significant decrease in operating measurers of efficiency after IPOs in Russia and Kazakhstan.

Added: Feb 10, 2019
Bykova A. Journal of Corporate Finance Research. 2017. Vol. 11. No. 1. P. 37-49.

In pursuit of economic growth and development, companies have tried to strike a balance between competition and monopoly power. This paper reviews the evidence on industrial concentration and its economic correlates (notably firms’ performance as measured by innovation output) in frame of emerging markets conditions. Competition theory was developed in countries under assumptions that do not necessarily fit the emerging countries. Our main research question is whether the level of local market concentration influences (and if it does, in which way) on innovation activity undertaken by companies operating on emerging markets. Apart from linear association, the empirical literature suggests that industrial concentration could exhibit an inverted U-relationship as far as its link to certain economic indicators of success, such as innovation output. We measure concentration by using the Herfindahl-Hirshman Index. This paper finds empirical evidence in support of the Schumpeterian hypothesis that more concentrated industries stimulate innovation and observes the inverted U-relationship curve. Further, the empirical model demonstrates the relative importance of technological leadership in concentration industries for enhance innovations. This suggests a role for recalibrating firm and industry policies amend.

Added: Oct 15, 2016
Skvortsova I., Sidelnikova A. Journal of Corporate Finance Research. 2020. Vol. 14. No. 2. P. 35-57.
Added: Sep 24, 2020
Evdokimova M. Journal of Corporate Finance Research. 2022.

There are innovation creation process, innovations classifications, and measures considered in the paper. Recently focus on the literature moving from innovations relationship with financials to the role of people. This review considers board of directors group characteristics and CEO individual characteristics (the part of which impacts only firms from innovative industries) significant for innovation creation. The paper predicts investment in innovation, innovation outcome, and optimal for shareholders’ wealth board of directors’ type in dependence on CEO individual characteristics.

Added: May 25, 2021
Anilov A., Pirogov N. Journal of Corporate Finance Research. 2016. No. 2 (38). P. 38-50.

Financing and payout decisions generally affect company’s economic performance: they have impact (both directly and indirectly) on the free cash flow and, thus, on company’s and shareholders’ value. Search for optimal capital structure and optimal payout policy strategy that are likely to maximize shareholders’ utility resulted in the papers, dedicated to determinants of capital structure and payout policy. In such papers, one of the policies is usually treated as a determinant for another one. This bound does not let researchers to make some conclusions about existence or absence of interrelation between payout and financing choices. To capture this interrelation, simultaneous regression analysis should be performed. Researchers, though, cannot come up with unified conclusion about the existence and direction of such interrelation. The absence of certain results as well as low level of research done on emerging markets make this topic rather relevant. The results of recent research on the interrelation between payout and financing decisions are discussed in this paper. We also develop an econometric model that allows us to check the existence of interrelation in emerging markets and to compare the results to those obtained from developed markets. The article contributes to the existed literature in the following directions: first, two debt variables are taken into account (total and long-term debt) as well as two payout policy variables (total payout and dividend payout). Second, macroeconomic variables are controlled. Third, the results obtained from the companies from emerging countries are compared to those obtained from developed markets.

Added: Jul 31, 2016
Galanova A., Lutsenko M., Zamorano J. Journal of Corporate Finance Research. 2020. Vol. 14. No. 3. P. 7-18.

In the last decades of the 20th century, various classes of alternative investments have become increasingly popular among investors. During this time, art as a form of alternative investment attracted attention not only from potential buyers but also from academic scholars. Unfortunately, only a few of the newly published papers contained any quantitative analysis with regard to art’s investment performance. Besides, even a smaller amount of research was devoted to the analysis of Russian art markets. Therefore, the purpose of this work is to evaluate the efficiency of investments in the artworks of contemporary Russian painters and to compare the effectiveness of these investments with the effectiveness of investments in stock, bond and real estate markets in Russia and the USA. For this research, we first conduct a hedonic regression analysis on the data available for 1950-2019 time period. After that, we build a hedonic price index for the canvases of contemporary Russian artists. According to the results, the trend of this index reiterates largely the price behavior for world contemporary art market. However, the results of this study indicate that investments in contemporary Russian art do not outperform investments in instruments of Russian and American capital and real estate markets. These results were derived by applying the CAPM model which demonstrated that Russian art as a form of alternative investment is not advisable for the purposes of diversification of investment portfolios. Based on these findings, contemporary Russian art in general can be considered an unattractive instrument for Russian and foreign investors.

Added: Nov 28, 2019
Ochirova E. Journal of Corporate Finance Research. 2019. Vol. 13. No. 4. P. 87-94.

Technological transformation of the economy is pushing companies to create or improve their technological capabilities. One of the ways to acquire technology and knowledge that allows companies to remain competitive is mergers and acquisitions (M&A). The efficiency and motives of M&A transactions with motivation of obtaining new technology and knowledge are the subject of a large number of studies. The contradictory results of studies of technological M&A transactions can be explained by the gaps of the empirical analysis or the weakness of the theoretical knowledge. The purpose of this study is to review the theoretical works on the effectiveness of M&A transactions in order to acquire technology and knowledge, and to identify the main results in this area. In particular, the motives of technological M&A deals were identified; the technological overlap of the parties of the M&A transactions and the relationship between the intensity of R&D expenses, innovative activity and company efficiency were described. In order to identify the relevant key determinants of the effectiveness of technological M&A transactions the motives of traditional M&A transactions were also examined. As a result of the analysis, it was revealed that the technological similarity between the acquiring and acquired companies have positive effect on the reaction of investors and on the effectiveness of the transaction, however, it negatively affects the overall effectiveness of the buyer company. The intensity of R&D expenses and innovative activity demonstrate inconsistent results on companies’ performance. Factors that have direct or indirect impact on the integration between companies - have contradictory results on both parties of a deal. Based on the existed literature the effectiveness of M&A transactions with the aim of acquiring technology and knowledge is associated with uncertainty for investors caused by the risks of such transactions in different sectors of the economy, the motives of managers and the characteristics of the parties of the transactions.

Added: Feb 17, 2020
Makeeva E. Y., Синильщикова М. Journal of Corporate Finance Research. 2020. Vol. 14. No. 4. P. 7-18.

This study is aimed at investigating the application of news sentiment analysis to bankruptcy prediction models in the context of the Russian retail sector.

We analyse 190 companies: 95 Russian retail companies that went bankrupt in 2015-2019, and 95 non-defaulting analogue companies. This figure was attained from a larger pool of 312 companies retrieved from the Spark database on the basis of analysis of relevant financial data and further validated by the presence of pertinent news media coverage within 3 years of default date. The methodological base of this analysis is the logistic regression approach, used as a benchmark model, and several machine learning models: random forest, support vector machine, and multilayer perceptron.

The predictor set applied consists of 34 financial variables and sentiment variables, aggregated using the ‘bag-of-words’ from a total sample of 4877 news articles, from more than 800 distinct online resource locations. We establish a set of hypotheses based on a review of existing literature in the area, and evaluate their accuracy on the basis of our technical analysis.

Our results show that sentiment variables are statistically significant, and that adding sentiment variables improves the performance of bankruptcy prediction models. Also, the results indicate some reference characteristics of companies in terms of word-choice and descriptions in the news, indicating word choices correlated with financially stability and those correlated with financially instability.

Added: Nov 10, 2020
Guseva O., Stepanova A. N. Journal of Corporate Finance Research. 2019. Vol. 13. No. 1. P. 107-119.

In this paper, the authors focus on two primary governance mechanisms which can be considered as sources of support for startup companies: the company’s ownership contingent and the company’s management personnel. Based on descriptive statistics from a sample of 416 Skolkovo start-ups from the ‘Nuclear’ and ‘Space’ clusters, and a Start-up-Barometer survey of 300 IT-entrepreneurs, this work provides new insights into ownership and management characteristics of Russian startups and the interplay between these dynamics.

The Russian venture market presents an interesting case of an emerging market with a number of successful startups in a challenging economic environment. The supply of venture capital for Russian startups is restricted by the presence of sanctions and legal restrictions on the investments of financial institutions such as pension funds and banks. Therefore, similar to other developed and developing markets, the most significant source of investments for Russian startups is bootstrapping.

In this paper we show that startups with different characteristics attract different kinds of investors, which is reflected in the companies ownership structures. In particular, government development institutes are more interested in investing in nuclear-focused startups, while corporate investors tend to keep a higher level of control over startups compared to other investors. We also confirmed the presence of correlations between different types of owners: government development institutions, corporate investors, venture funds, and family members. Additionally, the size of equity share for all types of owners (except family members) was found to be negatively correlated with the CEO’s share in the ownership structure.

Although the purpose of the article is descriptive, it motivates further research on the sources of support of startup growth, including relative importance of such sources and their effects on startup performance.

Added: Aug 28, 2019
Kudryashova A., Solntsev Sergey. Journal of Corporate Finance Research. 2019. Vol. 13. No. 2. P. 50-65.

This paper examines profitability as a factor in the turnover of poorly-performing executives in Russian banks, and how this acts as a mechanism of good corporate governance. It is intended to identify and measure the relative effects of different determinants on executive turnover, and thus highlight the practical sets of circumstances where turnover is most likely. A relatively unique perspective on the study of corporate governance, we intend to demonstrate an aspect of corporate accountability for commercial performance and shed light on high-level manifestations of reactive management practices.

In order to construct the most realistic and robust analysis, we will take into account the idiosyncracies of the companies and individuals involved in this process, and also consider the influence of external economic and social developments where appropriate. The empirical data in this research consists of 3251 observations concerning members of the executive boards of the 50 largest Russian banks from 2005 till 2014. Contemporary accounting data and other financial and economic indicators for these companies is weighed alongside personal information about the banks executives. Descriptive statistics and econometric approaches are utilised in order to parse the provided data and construct a comprehensive explanatory model. Our interpretative process includes the application of probit regressions and OLS panel regressions with fixed effects.

The results of this evaluation may be summarised as follows. We found out that a decrease in return on equity (ROE) and a decrease in return on assets (ROA) leads to a higher probability of executive turnover. Changes in the EBITDA to total assets ratio did not correlate with executive turnover probability. State-controlled banks showed a higher executive turnover rate. A greater turnover rate during pre-crisis 2006-2007 may have been caused by banks’ demand for new executives, in their ambition to attain extensive growth. A higher turnover rate in 2014 could have been inspired by the economic sanctions again Russia, or influenced by a recent policy of the Central Bank of the Russian Federation aiming at a “clearance” of the banking system. Finally, it was demonstrated that personal characteristics of the members of the executive boards did not have a significant influence on executive turnover probability.

This study contributes to the limited literature in the area by analysing the determinants of turnover of members of the executive boards of banks depending on the profitability of banks and other characteristics. This is the first study of this kind, based on extensive Russian data which allows for the appraisal of the mechanisms of corporate governance. While a primary limitation of this study is that only large banks were included in the sample, the very presentation of these conclusions carries significant weight in terms of defining methodological parameters for future research. This area is ripe for further investigation. For example, it is immediately apparent that the results may be very different for small or medium-sized banks, let alone other kinds of financial and commercial institutions.

Added: Oct 22, 2018
Markovskaya E.I., Radushinsky D., Holodkova V. Корпоративные финансы. 2019. Т. 13. № 2. С. 104-113.

State-private partnership as one of the common formats of interaction between government and business.

The article is devoted to the analysis of current changes in the legislative base, the identification of relevant approaches to assessing the economic effects for stakeholders, as well as the construction of financial models in the framework of the implementation of agreements on public-private partnership. The article presents the result of testing the financial model that we propose, which can be used in concession agreements.

The article analyzes the legal framework and development trends of this form of interaction. We propose to consider and evaluate PPP projects from the point of view of 3 aspects: organizational, methodological and managerial (stakeholder). By stakeholders, we understand individuals and / or legal entities that are directly or indirectly interested in the results of the project.

Modern methods for assessing risks, benefits and effects for various stakeholders of projects implemented in the form of PPP are considered. For each of the stakeholders, we can identify the effects that they can evaluate in the process of analyzing projects implemented in the form of a public-private partnership. By effects, we understand the quantitative and qualitative results of a project that can be identified and, as a rule, measured.

It is suggested authors’ approach to building a financial model and evaluating the effects of PPP projects. The article describes the algorithm for building a financial model, and also presents the author’s approach to the assessment of the integral effect, taking into account the complex structure of the partnership participants.

Added: Dec 11, 2018
Vernikov A. V., Vassily Bokov. Journal of Corporate Finance Research. 2008. No. 7. P. 5-16.

This paper aims at explaining the differences in valuation of banking firms in Russia from a quality of governance point of view. A sample of acquisition deals and public offerings over the last 5 years is collected with the view of discovering factors that investors deem significant in making a decision whether to invest in a given banking firm and, if so, at what price. We use price-to-book-value of equity (P/BV) multiple as standard measurement of valuation and the dependent variable. As for explanatory variables, we put together a set of proxies for quality of bank governance and management, such as degree of concentration of control, managerial experience, degree of compliance with corporate governance best practices (e.g. degree of Board independence, qualification of external auditors), stability of bank’s governing bodies (Management Board and Board of Directors), and availability of external credit ratings. We find out which factors are statistically significant and relevant. A least squares multiple linear regression model is devised to check how individual variables explain the differences in valuation. We discover that external investors attach value to high concentration of ownership, sheer size of the bank, stability of the governing bodies, involvement of well-established external auditors and also that strategic investors tend to pay higher acquisition premiums. The features of the Board of Directors such as its independence, maturity and stability appear to create less value if any.

Added: Feb 5, 2013
Anilov Artem, Alexandrov M., Grafov Denis et al. Journal of Corporate Finance Research. 2014. No. 2. P. 77-90.
Added: Nov 28, 2015
Stepanova A. N., Olga Ivantsova. Journal of Corporate Finance Research. 2012. Vol. 4. No. 24. P. 80-86.


This paper is focused on the recent research in the area of performance effect of corporate governance in banking sector. We review the results of studies devoted to two key nonfinancial characteristics of a commercial bank influencing its performance. In the first part of the paper we analyze the evidence on board of directors structure impact on bank performance. We focus on the performance effect of board size, independent directors and gender diversity of the board. In the second part we discuss the issue of bank ownership structure. In this paper we pay special attention to the difference between performance drivers in developed and emerging markets as well as to the performance drivers changes in times of financial crisis.

Added: Mar 24, 2013
Rossokhin V. V., Ryabova E. Journal of Corporate Finance Research. 2020. Vol. 14. No. 1. P. 20-28.

The problems of formation of the company’s capital structure to date have already been studied well. A large number of theoretical papers and empirical studies devoted to this issue have been published. However, managers are confronted not only with the question of the optimal balance between equity and debt capital, but also with the choice of debt structure in the presence of several of its sources, such as public and private debt. This is a new paradigm in corporate finance. On the one hand, companies are not always ready to issue listed securities at the initial stages of their activity. On the other hand, raising funds in open markets has several advantages. With the help of public debt, one can attract a sufficiently large amount of financial resources with a lower cost in comparison with private borrowing. At the same time, as a rule, the public debt is not secured by the assets in the proper amount. According to the author’s opinion, in dealing with this question, companies can take into account not only the current state of the company and its financial indicators, but also the stages of the life cycle, since each of them has its own development features. The purpose of this study is to analyze whether life cycle stages and other financial indicators of a company affect the choice of a source of borrowed capital (private or public debt), thereby to contribute to the development of this research direction. The objects of study are Russian companies. In the empirical part of the study, the binary choice model had been applied. The sample size is 1,818 companies, the financial statements for three years were used. The stages of the organization’s life cycle were calculated by the method of V. Dickinson. A number of control variables were also included in the model. The results of empirical analysis indicate that the company decides to issue public debt, regardless of the stage of the life cycle. This allows us to conclude that the company, when conceptually resolving the question about the structure of borrowed capital, relies on economic indicators such as profitability, size of the company, structure of assets and financial leverage. Understanding this fact can also help potential investors in making investment decisions to form conservative portfolios.

Added: May 7, 2020
Rodionov I. I., Semenov A., Оскин А. Journal of Corporate Finance Research. 2020. Vol. 14. No. 3. P. 19-27.


Since 2006, Russian policymakers have been actively taking various measures to stimulate the venture capital market. Government venture capital funds are being created, for example, the Russian Venture Company with a capital of 15 billion rubles. Since 2011, thanks to the new legal mechanism, state-owned companies begin to invest in private venture funds. These measures have led to increased fundraising for startups. The main mechanism of such financing is grant support for young companies. According to 2018, the amount of grants to the total amount of funds raised in Russia is one of the highest among developed and developing countries, for comparison in the USA, it is more than 2.5 times lower. The venture market specifics is such that when deciding whether to invest in a company, investors inevitably turn their attention to the previous rounds of financing the company. The purpose of the work is to analyze the effect of the money grant received on the volumes of attracting subsequent financing.

To analyze the impact of the receiving money grant, the determinant approach was used, as the most common in research on this topic. Based on a sample of 184 Russian IT startups, two OLS models have built to show the effect of money grant size to follow-on investment rounds.

As a result, various sets of determinants were considered that explain the volume of investments attracted by startups for both international markets and the Russian market. In addition, an excursus was conducted to study the effectiveness of government venture funds, which are the main grantors in the Russian venture market. Based on the results of previous studies on this topic, it was shown that the size of the money grant has a positive effect on the amount of funding attracted in both follow-on rounds. For comparison, a number of previous studies of the Russian venture capital market show that the investment size of the current round has influenced only by the previous fundraising. Such a result testifies to the attractiveness for investors Russian IT startups that received grant support.

The scientific novelty of the article is that the amount of funding attracted by startups is explained by such a specific indicator as grant support. In addition, the results obtained have certain practical value for those who invest in Russian startups. Investing in startups that received grants increases the likelihood of an exit for the investor in the next investment round.

Added: Dec 9, 2020
Grigorieva S., Egorova Angelina. Journal of Corporate Finance Research. 2019. Vol. 13. No. 3. P. 7-18.

A substantial body of academic literature continues to investigate whether M&A deals create or destroy shareholder value and what are the main determinants of M&A performance, but the results are still inconclusive. In this paper, we investigate the impact of corporate life cycle on M&A performance from the perspective of acquiring firms. We shed additional light on the performance of M&A deals from the perspective of bidders’ life cycle stages and the deal size . We single out mega deals, where activity remains upbeat, and compare their effects on M&A performance with the effect of non-mega transactions. In contrast to previous studies in the area, we identify four life cycle stages (introduction, growth, maturity and decline), whereas the existing literature mostly focuses on three life cycle stages.

Our sample includes 2413 US domestic M&A deals from 2003 to 2017, and consists of 386 mega deals and 2027 non-mega transactions. The data for analysis were obtained from Capital IQ, Bloomberg and Thomson Reuters Eikon databases. Based on the event study method and regression analysis, we find that stock market reaction is positive for M&A deals in the US and this reaction is more favourable for non-mega acquisitions than for mega M&A deals. We show that non-mega deals outperform mega transactions for acquirers at the introduction and growth stages of the business life cycle.

Our results also indicate that benefits for shareholders from acquiring firms decrease on average with the lifecycle of an organisation, but the returns for shareholders are positive in both cases. By contrast, in mega deals, shareholders receive negative returns when the acquiring firm is at introductory life cycle stage. The scientific novelty of this paper is reflected in our contribution and expansion of the scope of research in this field. There is a relative scarcity of analysis examining M&A deals from the perspective of life cycle stage, and our addition of a fourth category of analysis in this area, along with a focus on the value of the deal, expands the range of methodology for future research. This research is open to further expansion in different markets and our methodology is readily adaptable for the addition of further analytical variables. Importantly, with the validation of our research hypotheses and the confirmation of significant results, we provide a useful new tool for managers and professionals engaged in M&A deals to actively gauge and forecast practical implications of their deals.

Added: Oct 31, 2019