Regional interests and behavior of agents on the domestic M&A market

Abstract
The article shows the importance of mergers and acquisitions (M&A) for the Russian economy; demonstrates the characteristics of domestic transactions from the position of target companies and acquirers. We exhibit results of a two-level analysis of the current regional characteristics of the domestic M&A market: by federal districts and by constituent entities of the Russian Federation. The developed methodology for identifying dependencies between regional economic indicators and the number of M&A transactions (for the target and acquiring companies) is one of the first attempts to conduct econometric analysis for domestic M&A transactions. For the period of 2008–2014, we constructed regression models for panel data, using a pooled model, a model with fixed effects, and a model with random effects. The article discusses the estimates from the econometric study of the regional orientation of agents of the Russian M&A market. We specified the factors which influence the beginning of formation of a new profile of domestic M&A transactions and which change the regional priorities of investors.

Keywords:
mergers and acquisitions of companies, domestic transactions, regression models, fixed and random individual effects, econometric estimation



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