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2020 | OriginalPaper | Chapter

Meta-analysis of M&As Studies in Emerging Markets

Authors : Anna Baranovskaya, Margarita Stemasova

Published in: Strategic Deals in Emerging Capital Markets

Publisher: Springer International Publishing

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Abstract

Mergers and acquisitions (M&As) are a specific type of investment and many such transactions are made each year. Recently, the role of emerging capital markets has significantly increased in the M&As market. The growing number of transactions and increasing volumes has generated a lot of research devoted to the effectiveness of M&As. Unfortunately, the conclusions are substantially different. A meta-analysis summarizes the results of previous research and gives an estimation of the explanatory power of one or another determinant included in empirical models considering the diversity among the research. This study determines how different variables affect the performance of M&As deals on average in emerging capital markets. This research is one of the first in this area for emerging capital markets, although there are several studies of developed capital markets, mainly the US market. The study was conducted on a sample of 26 articles about M&AS performance in emerging capital markets. The sample covers articles published from 2003 to 2014. Countries in the selected articles include China, India, Brazil, Russia, Malaysia, South Africa, Argentina, Chile, Slovenia, and Poland. For the analysis, we have chosen the most popular among research determinants of the M&As effectiveness: the method of payment, the size of the acquirer, the deal size, cross-border deals, private target company, ROE, industry relatedness, SOE target (state ownership in the target company), ROA, and the financial leverage of the acquirer. This analysis allows conclusions to be drawn about differences in the explanatory power of different determinants, which has practical application for further research. The strongest drivers of performance for emerging capital markets are method of payment, acquirer size, ROA, and industry relatedness.

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Footnotes
1
See, for instance, L. Pepall, D.J. Richards, G. Norman, 2005, Industrial Organisation, Contemporary theory and practice, Thomson, 2005, pp. 358–391.
 
2
L. Pepall, D.J. Richards, G. Norman, 2005, Industrial Organisation, Contemporary theory and practice, Thomson, 2005.
 
3
We calculated this number of deals by adding all deals in samples, not excluding recurring.
 
4
Fixed effect (FE) model assumed that all of the variability between effect size is due to sampling error.
Random effect (RE) model assumed the variability between effect sizes is due to sampling error plus variability in the population of effects (Pigott Terri 2012). FE and RE models are the same as for panel-data analysis.
 
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Metadata
Title
Meta-analysis of M&As Studies in Emerging Markets
Authors
Anna Baranovskaya
Margarita Stemasova
Copyright Year
2020
DOI
https://doi.org/10.1007/978-3-030-23850-6_4