Cross-border Mergers and Acquisitions of High-Tech Buyers from Developed Capital Markets

This work is devoted to the study of international mergers and acquisitions, in which high-tech firms of developed capital markets acted as buyers. 283 transactions were analyzed to determine the overall profitability of these transactions, as well as to determine the impact of specific characteristics of high-tech industries and a given macro environment on cumulative excess returns on the shares of the initiator of the transaction. Thus, the following results were obtained. Firstly, international mergers and acquisitions in high-tech sectors of developed capital markets are, on average, unprofitable for the buyer. At the same time, the belonging of the target company to the chosen industry and/or macro environment negatively affects the effectiveness of the M&A transaction. This can be explained by the fact that the process of integration of the target company during this period requires a lot of resources and time, which reduces the efficiency of both companies and ultimately affects the market value of the initiator. Secondly, the following variables influenced the effectiveness of the M&A transaction: the negative impact of the number of employees left after the date of the announcement, the positive impact of the quality of diplomatic relations between the countries of operation of companies, the negative impact of economic distances between countries of operation of companies and the positive impact of buyer's Tobin's q index. These facts show that the success of the M&A transaction is determined not only by the specific characteristics of the company's financial indicators, but also by the industry features and features of the macro environment in which it operates.