Влияние корпоративных слияний и поглощений на результативность компаний стран БРИКС

Starting from the 21st century we can observe a shift from developed markets of North America and Western Europe to Emerging markets. A more and more important role in the global economy is playing BRICS. BRICS is the acronym of five major emerging economies: Brazil, Russia, India, China, and South Africa. The BRICS have a combined area of 39 mln km squared and an estimated total population of about 3.21 billion, or about 27% of the world land surface and 42% of the world population (BRICS. Wikipedia. Wikimedia Foundation, 2001). The same situation is with GDP, BRICS produce 24% of nominal GDP and 32% of the World’s GDP PPP (O’Neill, 2021). Now it’s clear how important BRICS to the World Economy and what is more important the role of BRICS is growing every year. As developed countries struggle to grow in terms of GDP, BRICS countries grow at rates higher than World Economy.
The growth of the country goes the same direction as the growth of companies in the same country. One of the most popular ways for a company to grow is mergers and acquisitions. M&A have many potential benefits, which mainly focus on boosting profits and shareholder value through:
• the economies of scale produced by increasing market share;
• the expanded use of an existing distribution network by the acquisition of new product
capabilities;
• the extension of a strong product capability into new markets;
• the diversification of product and market risks.
This way mergers and acquisitions become an essential tool for corporate development in
today’s global marketplace, which is characterized by consolidation, convergence, the competition for talent and technology, and the increasing importance of such intangible assets as knowledge, skills, and customer relationships (Tamosiuniene and Duksaitė, 2009)
M&A is indeed a global process that involves companies from all over the world as management of these companies is seeking to take advantage of potential benefits and synergies stated above. BRICS countries playing key role in this market as share of M&A deals of BRICS companies in global volume raised from 3,7% in 1996 to 26% in 2018 and 25% in 2020.
The research topic mergers and acquisitions is widely studied from different sides but still, there are some gaps especially if we talking about the BRICS market. Academic papers mainly concentrate on the effects of M&A strategies in developed countries, while such effects in countries with emerging capital market are much less explored. Most of the studies of emerging markets are focused only on India and China and to the best of my knowledge, there are no studies
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that analyze the post-M&A performance of the companies in BRICS using accounting studies approach based on financial results of acquirers before and after acquisitions.
Hence, Papadakis and Thanos (2010) suggested a need for more geographically diverse samples to overcome the UK and US bias in the field of M&A studies. Thanos and Papadakis (2012a) suggest a need to look at emerging economies, because M&A results in the developed world may be valid for the developed world, but may not be valid for the developing world (Wong and Cheung, 2009)
For some time, many researchers have addressed the influence of corporate acquisitions on performance improvements. Unfortunately, there appears to still be no consensus as to whether acquisitions create improvements in company performance or not.
Moreover, additional cost burdens arising in emerging markets from the necessity of gaining permits and government approval might make the acquisitions less likely to eventually improve the acquirer’s profitability. Given the importance of the state in BRICS, it is necessary to take this factor into account. State ownership can lead to lower performance due to lower internal efficiency incentives, stronger organizational rigidities, or non-profit maximizing behavior (Megginson and Netter, 2001).
There are also other important characteristics (Radygin., 2010) of the M&A process in emerging markets:
• the weakness of government regulatory agencies’ oversight of the M&A processes;
• the low involvement of organized securities-market tools in the process of mergers and acquisitions (most of the transactions are not with the assets of public companies, but
with private companies);
• the inability of minority shareholders to significantly influence the company’s actions;
• in most cases, the company’s owner is also its top manager;
• the lack of a transparent ownership structure of formally public companies (the ultimate
beneficiaries);
• the concentration of a significantly larger block of shares in the hands of a single owner,
on average, than is typical of Western public companies.
The object of the research is the sample 100 M&A deals of BRICS public companies that
occurred in years 2006-2017.
The subject of the master thesis is post-M&A performance in BRICS countries
The research goal of this master thesis is to define the impact of corporate mergers and
acquisitions on company performance in BRICS countries and to investigate factors that influence post-M&A performance. To achieve the research goal the following objectives are defined:
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1. Study theoretical aspects of mergers and acquisitions. Including classifications and motives for M&A transactions;
2. Analyze dynamics and current state of M&A in BRICS;
3. Based on literature review analyze approaches to measuring post-M&A performance and
factors influence it;
4. Justify research methodology and collect the necessary data;
5. Conduct empirical research to make conclusions on impact of M&A transactions on company
performance and factors that influence it;
6. Analyze the results of empirical research and make theoretical and practical conclusions.
The structure of this master thesis is divided into two parts: theoretical and practical.
In the first chapter, we introduce theoretical aspects of mergers and acquisitions, the
classification of deals, and main motives. Also, we list and analyze what different approaches scholars suggest on how to estimate post-M&A performance and factors that influence it. Then we define the approach that has been chosen by us and introduce hypotheses.
In the second chapter, we transfer theoretical considerations to the empirical field. We define the research methodology. Describe sample and its selection process. Afterward, we run the regression analyses, test hypotheses and deliver the main findings. In the end, we make conclusions and justify the managerial application of obtained results.