Empirical Analysis of Mergers and Acquisitions: Evidence from International and Comparative Supply Chain Operations in Russian Market

Fifty mergers and acquisitions deals that occurred in the period 2014-2017 in the Russian market were analyzed. Deals were randomly selected. The largest number of selected transactions accounted for 2015. 32% of all transactions occurred in the oil and gas sector of the economy. Within the framework of the study, two hypotheses were put forward: 1) the effectiveness of a merger and acquisition transaction increases with an increase in the capitalization of the company-buyer, 2) the effectiveness of a merger and acquisition transaction increases with an increase in its amount. The effectiveness of the merger and acquisition deal was expressed through the growth of the economic profit of the purchasing companies based on the comparative supply chain. Fifteen variables were selected as independent ones (return on invested capital; weighted average cost of capital; return on equity; return on assets; return on sales; multiplier “share returnâ€; multiplier “price / earningsâ€; multiplier “price / book value of assetsâ€; multiplier “ business value / revenue â€; multiplier“ Business cost / profit before interest, taxes and amortization â€; profitability of the company before interest, taxes and the multiplier “earnings before interest, taxes and depreciation / book value of assetsâ€; the dollar exchange rate, etc.), however, only two of them were included in the final type of the regression model: the price / net profit multiplier and the amount of the merger / acquisition transaction

The way of region”™s internal industrial reserves identification

The article deals with the methodology of the designing of region”™s industrial profile. It may provide a balanced and sustainable socio-economic growth of the territory.  We analyzed region”™s economic activities, conditions of each of the region. The temporal aspect affects the six years from 2007 to 2012, separately considering the crisis period, determining the extent of its impact on the indicators of economic development. At the first stage of the study carried out a structural analysis of EA”™s markets, each evaluates in order to assess the degree of region”™s influence on the market as a whole. In order to determine the level of competition on the EA”™s market concentration ratio was calculated Herfindahl-Hirschman Index. In order to determine the degree of specialization of the region in a particular EA there were used the coefficient of localization of industrial production that is used in practice for economic justification of production allocation. Assessment of business environment and the attractiveness of the region for employees, realized through dynamic analysis of the internal socio-economic indicators. We hold a cluster analysis of regions on the markets of analyzed economic activities with the purpose is to define the "ideal" clusters for each of the EA and to select those regions whose parameters satisfy the conditions of measured cluster. As a result, for each EA prepared a list of regions whose values had occasion to enter the cluster boundaries. Thus, for these regions analyzed EA is a prioritized for inclusion it in the region”™s industrial portfolio, having favorable conditions for the operation facilities and provides the best current position for leading regions. The presented methodology helps to outline the features of the regional strategic development and to design the portfolio of types of economic activities, ensures the implementation of region”™s strategic priorities. The main methods of the study are following; structural analysis of the regional economy, strategic planning and cluster analysis methods and binary logic

MOVEMENT OF FINANCIAL RESOURCES IN AFFILIATED SMES

The object of the study is represented by non-public companies not listed on the Russian organized stock market, with related, subsidiary, affiliated companies. All companies are small and medium-sized enterprises. The subject of the study was cash flows of companies associated with the attraction, distribution and redistribution of financial resources within the affiliate structure. We observed 94 SMEs of the Republic of Tatarstan, forming 12 affiliated structures. In 92% of affiliated structures, the interests of the owners of the parent companies or the interests of the owners of key companies were violated. The following results were obtained: we studied and described two main types of affiliated structures with violated interests of the owners; we highlighted the essential features of affiliated structures in which the interests of owners are violated; we described the basic scheme of movement of financial resources indicating a violation of the owners' interests; we proposed a method of justifying the price of providing financial resources for distribution within the affiliate structure. I67-7

Movement of financial resources in affiliated SMES

The object of the study is represented by non-public companies not listed on the Russian organized stock market, with related, subsidiary, affiliated companies. All companies are small and medium-sized enterprises. The subject of the study was cash flows of companies associated with the attraction, distribution and redistribution of financial resources within the affiliate structure. We observed 94 SMEs of the Republic of Tatarstan, forming 12 affiliated structures. In 92% of affiliated structures, the interests of the owners of the parent companies or the interests of the owners of key companies were violated. The following results were obtained: we studied and described two main types of affiliated structures with violated interests of the owners; we highlighted the essential features of affiliated structures in which the interests of owners are violated; we described the basic scheme of movement of financial resources indicating a violation of the owners’ interests; we proposed a method of justifying the price of providing financial resources for distribution within the affiliate structure