Econometric assessment of the impact of the buyer company’s financial position on the M&A effectiveness (in the pharmaceutical industry)
https://doi.org/10.38050/01300105202016
Abstract
This article provides the assessment of the impact of the buyer company’s financial position on the M&A effectiveness on the base of the pharmaceutical industry. We have estimated this correlation using OLS method and data for the period from 2005 to 2017. As a result, the hypothesis about the dependence of the M&A efficiency from the buyer company’s financial state has been confirmed. The developed econometric model have showed that more than 80% of variation of the cumulative abnormal return, received as a result of the transaction, is explained by growth rates of revenues and net profit, assets, current liquidity, autonomy and financial leverage, return of sales and assets at the transaction time.
About the Authors
M. A. Shtefan
NRU Higher School of Economics
Russian Federation
Russian Federation
Nizhny Novgorod
V. I. Shubina
NRU Higher School of Economics
Russian Federation
Russian Federation
Nizhny Novgorod
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Review
For citations:
Shtefan M.A., Shubina V.I. Econometric assessment of the impact of the buyer company’s financial position on the M&A effectiveness (in the pharmaceutical industry). Moscow University Economics Bulletin. 2020;(1):62-80. (In Russ.) https://doi.org/10.38050/01300105202016
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