1. Introduction. 2. Literature Review

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1 Th ffc of mrgrs and acqusons on compans fundamnal valus n mrgng capal marks (h cas of BRICS Dara Luzna, Naonal Rsarch Unvrsy Hghr School of Economcs a S.- Prsburg, daraluzna@homal.com Elna Rogova, Naonal Rsarch Unvrsy Hghr School of Economcs a S.- Prsburg, rogova@hs.ru Th sudy s amd a h assssmn of h ffc of mrgrs and acqusons on h fundamnal valu of acqurng compans n BRICS counrs. Th approach basd on h rsdual ncom modl was appld. Th pr-acquson xpcd fundamnal valu of h acqurng company and s ralzd pos-acquson fundamnal valu ar compard. Th sudy s fulflld on h sampl of 66 M&A dals n BRICS counrs, collcd from Zphyr, Bloombrg and Thompson Rurs daabass. Economrc modlng s appld o rval facors causng h valu craon or dsrucon among whch hr wr h company s sz, h mod of dal fundng, h ndusral spcfcs and h mhod of paymn. Mrgrs and acqusons; mrgng capal marks; BRICS counrs; fundamnal valu; rsdual ncom valuaon modl.

2 1. Inroducon Mrgrs and acqusons (M&A ar acvly bng dscussd n h acadmc lraur. In hs dals, h mrgng marks hav bcom a major cnr of acvy. Currnly, compans from mrgng marks ar nvolvd n vry fourh mrgr or acquson. Th ulma ladr s Chna; Brazl holds h rd plac n h rankng of h mos acv counrs, Russa s h 4 h. Among h counrs wh h mos aracv args Inda (% has h sam ra as h USA. As for acqurrs, a lo of hm ar also allocad a h mrgng capal marks. From h sandpon of compans nang M&A, s crucally mporan o answr h quson whhr h n prsn valu of a dal s posv? In hs cas, h fundamnal valu of h dal s xpcd o ncras, o h bnf of h sharholdrs of h acqurng company. In hs papr, h approach basd on h rsdual ncom modl (Rsdual Incom Valuaon - RIV s usd o valua h ffc of M&A on compans' fundamnal valu. In addon, an conomrc analyss of dals characrscs, affcng h craon or dsrucon of h fundamnal valu, s prformd. Thus, h am of hs sudy s o analyz h ffc of mrgrs and acqusons on fundamnal valus of acqurng compans n mrgng capal marks. Th papr s organzd as follows: w provd a lraur rvw rlad o h rsarch problm and dvlops hypohss o s. Th hrd par dscrbs h rsarch mhodology and daa samplng. A h nx par w dscuss h rsuls hypohss sng. In h concluson h conrbuon of h rsarch o hory and s managral mplcaons ar dscussd.. Lraur Rvw Th bass of h RIV modl s dvlopd by Ohlson (1995 on h assumpon ha h fundamnal valu of a company's quy consss of wo componns: h book valu of quy a h m of h valuaon and h dscound flow of rsdual ncoms, whch provd h surplus bwn h fundamnal valu and h book valu of quy. In (Dchow. al, 1999 h RIV modl was analyzd n rms of s praccal mplcaon. Comparng h RIV modl wh ohr valuaon modls, h auhors prasd s ponal for fuur mprcal rsarch. Frrra al. (008 xplord h bhavor of h hr valuaon modls - h rsdual ncom modl (RIV, h abnormal arnngs growh modl (AEG and h fr cash flow modl (FCF for compans radd a BOVESPA, a Th auhors conclud ha h RIV modl had h gras xplanaory powr for h prod from 1995 o 1999, whch could b xpland by spcal faurs of h Brazlan sock mark, wh s havly rgulad accounancy, h hgh ra of concnraon a capal marks and prvalng of bank loans as h man sourc of fnancng. Whn n 000 h mark has changd, hr was an nflow of compans radd a BOVESPA, and h AEG modl has bcom qual o h RIV modl. Th FCF was h las producv. Th hgh xplanaory powr of h RIV modl was confrmd by ohr suds. Thus, Frankl and L (1998 rpord ha smas oband on h bas of h RIV modl xplan mor han 70 % of varaon of h spaal daa. Snc h modl drmns h company s valu wh such ndcaors as h book valu of quy, n ncom, and h amoun of dvdnds, h xplanaory powr of hs varabls s also vry mporan. Th rgrsson consrucd for hs varabls n (Hand, Landsman, 1998 had h R ovr 80 %. Volkov and Brzns (006 sd h accuracy of quy valuaon modls basd on accounng

3 ndcaors a a sampl of Russan compans n and argud for h rlably and hgh xplanaory powr of h RIV modl. Buhvalov and Akulava (014 mad an amp o sarch an smaon modl for Russan compans, suabl for mos scors of h conomy. Th auhors propos a modfcaon of h RIV modl and rpor h rsuls of s applcaon o Russan compans for Thy conclud ha h fundamnal valu of compans br corrsponds o hr sragc valu han hr mark capalzaon obsrvd. Concrnng h suds of M&A n mrgng capal marks, acadmcs provd conrovrsal rsuls. For Inda, Manravad and Rddy (008 rpord ha for h prod of hs dals ld o a slgh profably ncras n h fnancal and bankng scors, whl h pharmacucal, xl and lcrcal ndusrs wr facd wh a rducon n oprang margns and rurn on nvsmn. In h chmcal and agrculural ndusrs M&A ld o a sgnfcan dcln n boh oprang margn and rurn on nvsmn. From h ohr hand, Ran, Yadav and Jan (014, who had analyzd h mpac of domsc and nrnaonal mrgrs and acqusons on h prformanc of acqurng compans n h prod of , rpord ha boh yps of ransacons ld o an ncras n h prformanc, bu h abnormal rurn of nrnaonal dals was hghr han of domsc ons. Wong al (009 xplord h abnormal rurn of M&A n h Hong Kong, Chna, Tawan, Sngapor, Souh Kora and Japan n bfor, durng and afr h announcmn of h dal. Thy rvald ha n h shor-rm prod nformaon on h dal had a posv mpac on shar prcs. Th smlar concluson was mad by Ch al. (011 on h sampl of 1148 dals of Chns compans for Ivashkovskaya, Shamrava and Grgorad (009 sd h hypohss on h posv nflunc of corpora dvrsfcaon a h company's valu a a sampl of Brazlan, Russan, Indan and Chns compans. Rsuls of h sudy allow o ascran h prvalnc of posv ffcs on corpora dvrsfcaon, whch confrms h frs hypohss pu forward by h auhors, ha dvrsfcaon dos no lad o h dsrucon of valu. In an mprcal sudy of h fnancal scor n BRICS counrs Grgorva and Grnchnko (01 analyzd h mpac of M&A on h valu of arg compans. In h posv ffc of hs dals on h valu of arg compans was confrmd for a shor-rm m horzon for compans n Brazl, Inda, Chna and Souh Afrca. As for h Russan dals, ffc was ngav. Th auhors also dnfd drmnans of M&A ffcvnss, whch wr roughly smlar for all h counrs of BRICS: mhod of paymn, h sz of h dal, h prsnc of nangbls from h acqurng company, xprnc n M&A and h counrs spcfcs. Grgorva and Trocky (01 usd an approach basd on h fnancal rporngs o valua h mpac of M&A a h oprang ffcncy of compans of BRIC counrs n and dnfd h growh of oprang prformanc (EBITDA / Sals n wo yars afr h dal complon. Grgorva and Prunna (01 hav usd boh approachs: shorrm assssmn was conducd by vn sudy, and long-rm on - on h bass of h fnancal samns. Havng analyzd 80 dals n mrgng capal marks n , hy concludd ha dals dsroyd valus of arg compans. Dsp som dffrncs n h rsuls, n gnral, rsarchrs hav com o concluson ha M&A hav a posv mpac a h company's valu. In accordanc wh hs conclusons w dvlop our hypohss. H1. Mrgrs and acqusons n BRICS counrs lad o h growh of hr fundamnal valu. H. Inrnaonal mrgrs and acqusons lad o grar growh of a company s fundamnal valu of h company han domsc dals.

4 H. Th sz of h acqurng company has a ngav mpac on h ffc on h fundamnal valu of h company as a rsul of M&As. Consdrng conoms of scal, s assumd ha smallr acqurr should mor bnf from h dal, han largr compans. In addon, smallr arg company, h asr o an acqurr s o ngra no s acvs. H4. Th dal sz affcs ngavly a h ffc on h fundamnal valu of h company. I s assumd ha h coss of larg dals lad o a rducon n h fnancal and oprang prformanc of h acqurr, whch affcs ngavly on s fundamnal valu. H5. Typ of ransacon has an mpac a h fundamnal valu of h acqung company. H6. Typ of fnancal ransacon has an mpac a h fundamnal valu of h acqurng company. H7. Dal paymn n cash has a posv ffc on h fundamnal valu of h acqurd compans. I s assumd ha, n comparson wh paymn ransacons va db and quy ransacons, paymns n cash ar asr o prform ha hlps o mprov a company's fnancal prformanc. H8. Dal paymns va db or shars lad o h dsrucon of h fundamnal valu of h acqurrs. H9. Dal paymns wh dfrrd paymns or arn-ous lad o h craon of h acqurrs fundamnal valu. I s xpcd ha such paymns rduc h rsk of advrs slcon, bcaus h scond par of h paymn dpnds on h oprang rsuls of arg compans. H10. Th ndusry afflaon has an mpac on h fundamnal valu of h acqurr.. Mhodology and Daa Samplng Th mpac of M&A dal a h company's fundamnal valu s drmnd wh h dffrnc bwn h xpcd fundamnal valu of h acqurr bfor h dal (pracquson xpcd fundamnal valu and a fundamnal valu of h company afr h ransacon (ralzd pos-acquson fundamnal valu. Th basc modl for h sudy s h rsdual ncom valuaon modl (RIV. Th fundamnal valu s h prsn valu of h xpcd dvdnd paymns: E D V, (1 1 whr V s h fundamnal valu of quy a h momn, E [] s h xpcd man basd on nformaon avalabl a momn, D + dvdnd paymns a +, r dnos h cos of quy. Changs n h book valu of quy ar rflcd n h fnancal samns as follows: B B 1 NI D, ( whr B, B -1 s h book valu of quy n prods and -1, dnos h n ncom a, D dnos dvdnd paymns a. By combnng xprssons (1 and (, w oban h followng quaon: E NI 1 r B 1 E B V B (1 r (1 r. ( 1 I s assumd ha h las par of h quaon ( quals o zro. Th scond rm of h quaon s h prsn valu of fuur rsdual ncoms. Thus, h fundamnal valu s h sum of h book valu of quy and prsn valu of fuur rsdual ncoms:

5 E NI r B 1 1 V B. (4 1 For praccal applcaon, quaon (4 rqurs a m horzon, basd on h assumpon on a rmnal valu. To do hs, w modfy h modl as follows: E NI 1 r B 1 E TNIT r BT 1 V B. (5 T1 1 r Th valuaon of h mpac of a mrgr or acquson a h fundamnal valu s basd on h quaon (5. For h forcas prod, four rporng prods from h da of h ransacon wr assumd. To oban h fundamnal valu of h acqurng company afr h dal (Vpos, quaon (5 has bn modfd as follows: V pos B NI r B NI r B NI (6 r r B NI r B Th frs rm rprsns h valu of quy n h prod -1, h las accounng prod bfor h mrgr. Prod 0 s h yar of compans consoldaon, h frs rporng prod afr h ransacon. Th ffh rm dscrbs a rmnal valu, whch quals o h xcss profs of prod, dscound a nfny. M&A ar ofn accompand by h ssu of nw shars for h sharholdrs of h arg company. Issu of nw shars may ncras h oal company's fundamnal valu whl rducng h fundamnal valu of a shar. Thus, for mor rlabl rsuls s rasonabl o focus on h mpac of h dal a h fundamnal valu pr shar as follows: V pos B 1 EPS0 r BPS (1 r 1 EPS1 r BPS (1 r 0 EPS r BPS (1 r 1 EPS r (1 r BPS r, (7 whr BPS dnos h book valu of quy pr shar, EPS ar n arnngs pr shar. To avod dry surplus ffcs n dfnng h company s fundamnal valu afr h dal, h frs and scond rms of h quaon (7 ar lar rplacd wh h book valu and dvdnds (dvdnds pr shar, DPS for prod 0 (Pnman, 007: DPS0 BPS0 EPS1 r BPS0 EPS r BPS1 EPS r BPS Vpos r. (8 To calcula h pr-acquson xpcd fundamnal valu, w consruc h sam componns as n quaon (8 for h yar pror o h ransacon (-1: E 1 (DPS0 E 1 (BPS0 E 1 (EPS1 r BPS0 E 1(EPS r BPS1 E 1(EPS r BPS Vpr r. (9 Expcaons n h quaon (9 ar basd on h assumpon of h absnc of h dal (or lack of nformaon on. Comparson of quaons (8 and (9 provds an sma of h mpac of M&A a h fundamnal valu pr shar of h acqurng company: V V pos V pr. (10 To mak hs assssmn comparabl for dffrn compans us h prcnag ncras n valu s usd as follows: (Vpos Vpr % V. (11 V For valuaon of h pr-acquson valu fuur arnngs pr shar (EPS wr calculad by mulplyng h forcas of rurn on quy (ROE a h prdcd valu of h book valu of quy pr shar (BPS a h bgnnng of h yar for ach fuur prod. For a forcas of ROE an avrag ROE of h acqurng company n prod from - o -1 wr usd (Frankl, L, pr

6 Th book valu of quy pr shar for h prod 0 s calculad as h book valu of quy pr shar for h prod -1, addd o h prdcd valu of EPS and dmnshd a xpcd dvdnds of h prod 0. Smlar calculaons ar mad for ohr prods. For calculaon of fuur dvdnds pr shar h xpcd valu of EPS s mulpld a h xpcd dvdnd payou rao. Dvdnd payou rao s calculad as h avrag of dvdnd payou raos for prods from - o -1. Th prod whr h ncom s ngav s xcludd from h calculaons. If h company carrs losss a all pr-acquson prods or f h prdcd valu of EPS s ngav, s assumd ha fuur dvdnds qual o dvdnds for prod -1. As h cos of quy (r w usd a m-varyng dscoun ra for vry company calculad on h bas of h CAPM. To rflc h spcfcs of mrgng capal marks, h counry rsk prmum was calculad n accordanc wh h approach proposd by Damodaran (009. As h rsk-fr ra of rurn h US Trasury bonds wr appld. Th cos of capal calculad for h prod -1, s usd o calcula h xpcd pr-acquson fundamnal valu, whras for h calculaon of h pos-acquson fundamnal valu h avrag valu r for prods 0- s consdrd. If h rmnal valu s ngav, s rplacd by a null valu. If acqurrs cas hr xsnc whn four yars afr h ransacon, hn h yar of "dah" s akn for h fnal prod of h analyss. For daa samplng daabas Zphyr (Burau van Djk was usd. To collc fnancal nformaon on compans, daabass Thomson Rurs Advancd Analycs and Bloombrg wr usd, as wll as fnancal samns of h analyzd compans. Th sampl ncludd dals compld from January 009 o March 01. For h formaon of h fnal sampl followng crra wr usd: acqurrs should b publc compans whos shars ar lsd on h sock xchang. W consdrd only compld dals wh h mnmum sz of USD 100 mllon. Th sampl ncludd 47 dals bu, du o h absnc of som daa, was rducd. Th groups of dals mad by acqurrs n h shor rm (up o 1 monh hav bn combnd and furhr rad as a sngl dal. Th fnal sampl consss of 66 dals (Fg Brazl Russa Inda Chna 46 Fg. 1. Dsrbuon of dals n h sampl accordng o hr counrs 4. Rsuls and Dscusson Tabl 1 dmonsras h rsuls of calculang h ffc of dals on h fundamnal valu pr shar: h posv ffc of h ransacon a ΔV> 0, and a ngav ffc a ΔV <0. As a rsul, of 66 analyzd dals, 95 (80% ld o an of ncras fundamnal valu pr shar, whl 71 dal ld o h dsrucon of h valu. Thus, h hypohss 1 of hs sudy canno b rjcd. To assss h nflunc of varous characrscs of h dal a s ffc xprssd by ΔV (quaon 10 h followng rgrsson quaon was smad by OLS: dfnvalu, (1 X

7 whr dfnvalu s h dpndn varabl, calculad valu of h dffrnc bwn h fundamnal valu pr shar of h acqurr bfor and afr h dal, β dnos h vcor of paramrs; X s h vcor of ndpndn varabls, characrzng h dal ; ε s h modl rror. A compl ls and dscrpon of h varabls s prsnd n Appndx. Tabl 1 Th dal ffc on acqurrs fundamnal valu Counry Toal numbr of Posv ffc (ΔV>0 Ngav ffc (ΔV<0 dals Brazl Russa Inda Chna Souh Afrca Toal Dsp h prsnc of sgnfcan facors n h OLS-modl, s ffcvnss s dubous. Frs, h dpndn varabl of h modl canno b compard for dffrn compans and dffrn dals, du o ncompably of hr absolu sz. In hs rgard, w also usd as h dpndn varabl h rlav ncras n valu for ach of h acqurrs (quaon 11, bu n hs cas non of h valuad facors has provd s sgnfcanc. Also, bcaus of h low coffcn of drmnaon (0,16, h xplanaory powr of h OLS modl s low. Thn, s mpossbl o judg on h adquacy of h oband coffcns of h modl, du o hr vry hgh valus ha maks hm ncompabl for dffrn dals. To mprov h rsuls, w appld bnary choc modl wh h dpndn varabl as h qualav ffc of h dal, h craon or dsrucon of h fundamnal valu of h company pr shar as follows: Eff, (1 Z whr γ s h vcor of paramrs; Z mans h vcor of ndpndn varabls, characrzng h dal ; ε s h modl rror. Th valuaon was prformd n wo mods. Mod 1 appld lss numbr of xplanaory varabls (hus, dos no ak no accoun a numbr of quanav varabls and h varabls dscrbng h mhod of dal paymn, bu covrs all ransacons n h sampl. Mod consdrs all h varabls lsd n Appndx, bu du o lack of daa on som of h characrscs smad, sampl s rducd o 59 dals. For br nrpraon of h rsuls, w calculad h margnal ffcs for facors Z. Th combnd rsuls of valuang h dal ffc ar dmonsrad n Tabl. By comparng h rsuls of modlng, s rvald ha followng facors hav a sgnfcan mpac a h craon or dsrucon of h fundamnal valu pr shar. Dal yp. Accordng o h rsuls of wo modls of bnary choc (mod 1, dals rlad as acqusons (dypacq, hav a ngav mpac on h probably of crang a fundamnal valu for h acqurng company. Th mhod of dal fnancng. All four modls of bnary choc rpor ha h dal fundd wh h capal ncras (dfncspncr mprovs h probably of a posv ffc on h company's fundamnal valu. Scor of conomy. Modls of bnary choc hav shown h ngav mpac for acqurrs n h chmcal ndusry (duschm. Ths rsul corrlas wh h fndngs of Manravad and Rddy (008. A smlar ffc s obsrvd for h ol and gas compans (ndusolgas and o h sl-procssng ndusry (ndussl. If an acqurr s oprang n h coal ndusry (nduscoal and ral sa (ndusrals, hr s a grar lklhood of crang fundamnal valu as a rsul of M&A. So h hypohss 10 s confrmd.

8 Varabl OLS, sgn Toal rsuls of modls smaon Bnary log Bnary log modl, mod 1: modl, mod margnal ffc : sgn Bnary prob modl, mod 1: margnal ffc Tabl Bnary prob modl, mod : sgn Dypacq -0,09(*** -0,189(*** Dypcapncr + (*** -0,808(*** Dypmnors + (** - (** Dfncapncr 0,4(*** + (*** + (*** + (*** Dfnconvr - (*** + (*** Dfnprvplac - (*** + (*** Indusbank + (*** Induspow - (** Induschm -0,154(*** - (*** - (*** - (*** Indusolgas -0,79(*** - (*** - (*** - (*** Iduscoal + (*** + (*** Indusrals + (*** + (*** Indussl -0,8(*** - (*** - (*** - (*** Induslc + (*** Indusfnsvcs + (*** Dmpaymconvd - (** Dmpaymdfpaym + (*** + (*** Dmpaymdassum - (** Dmpaymou + (*** + (*** Prdmarkcap + (* + (* No: In bracks h lvl of sgnfcanc s markd: *** - 1%, ** - 5% * - 10% Mhod of dal paymn. As a rsul of a bnary choc modl (mod dals pad hrough dfrrd paymn (dmpaymdfpaym and arn-ou paymn (dmpaymou, hav a grar chanc of crang a fundamnal valu for h acqurng company. Thus, h hypohss 4 canno b rjcd a h 1% lvl of sgnfcanc. Ths rsul conradcs h concluson by Grgorva and Grnchnko (01, who had com o h concluson ha h cash paymn has a posv ffc on h valu. Quanav facors. Modls of bnary choc (mod shown ha acqurng compans wh grar mark capalzaon bfor h dal (prdmarkcap hav a grar chanc of crang a fundamnal valu. If w assum ha h mark capalzaon s h characrsc sz of h company, hs rsul s also dffrn from h rsuls by Grgorva and Grnchnko (01, whch rvald ngav dpndnc of h sz of h acqurr and h dal ffcvnss. Thus, h hypohss s rjcd a h 10% sgnfcanc lvl. Dal counry of orgn urnd ou o b nsgnfcan n all h modls, whch dos no allow, n h framwork of h rsarch, o s h hypohss. Wh rgard o ohr sgnfcan covaras hr ar conradcons n dffrn modls ha do no allow assrng hr nflunc on h dpndn varabl. As a rsul of mprcal rsarch, rvald ha mrgrs and acqusons n BRICS counrs lad o an ncras n h fundamnal valu pr shar of h acqurng company. Thr wr also dfnd h facors ha hav a sgnfcan mpac on h ffc of mrgrs and acqusons, rsulng n a hghr probably of valu craon. Ths nclud: ransacon yp, company sz, ndusry afflaon, way of dal fnancng and h mhod of paymn. Ths rsuls hav no only horcal bu also praccal mporanc, snc hy allow h fnancal managmn of compans oprang n mrgng marks, ncludng Russan, o dsgn and mplmn mrgrs and acqusons so as o cra valu for nvsors.

9 Rfrncs Bukhvalov, A. V., & Akulava, E. A. (014. Ehmprchskaya fundamnaljnaya ocnka rossyjskkh kompanyj: v poskakh sragchskoyj cnnos [Emprcal fundamnal valuaon of Russan compans: n sarch of h sragc valu]. Rossyjskyj zhurnal mndzhmna, 1 (, -1. Ch, J., Sun, Q., & Young, M. (011. Prformanc and characrscs of acqurng frms n h Chns sock marks. Emrgng Marks Rvw, 1 (, Damodaran, A. (009. Volaly Ruls: Valung Emrgng Mark Compans, Srn School of Busnss workng papr. Nw York, Srn School of Busnss. Avalabl a: hp://popl.srn.nyu.du/adamodar/pdfls/paprs/mrgmks.pdf. Dchow, P. M., Huon, A. P., & Sloan, R. G. (1999. An mprcal assssmn of h rsdual ncom valuaon modl. Journal of Accounng and Economcs, 6 (1-, 1-4. Frrra, E. S., Nossa, V., Ldo, B. C. A., Txra, A. M. C., & Lops, A. B. (008. Comparação nr os Modlos Rsdual Incom Valuaon (RIV, Abnormal Earnngs Growh (AEG Fluxo d Caxa Lvr (FCL: um sudo mpírco no mrcado d capas braslro [Comparson Of Th Rsdual Incom Valuaon, Abnormal Earnngs Growh And Fr Cash Flow Modls: An Emprcal Sudy Of Th Brazlan Capal Mark]. Brazlan Busnss Rvw, 5 (, Frankl, R., & L, C. M. (1998. Accounng Valuaon, Mark Expcaon, and Cross-Sconal Sock Rurns. Journal of Accounng and Economcs, 5 (, Grgorva, S., & Prunna, T. (01. Th Prformanc of Mrgrs and Acqusons n Emrgng Capal Marks: Nw Evdnc. Hghr School of Economcs Rsarch Papr, WP BRP 0/FE/01. Moscow, Naonal Rsarch Unvrsy Hghr School of Economcs. Avalabl a: hp:// 00bc7d5/Workng%0papr,%0SSRN,%00FE01.pdf. Grgorjva, S. A., & Grnchnko A. Yu. (01. Vlyan sdlok slyanyj poglohnyj v fnansovom skor na somosj kompanyj-pokupalyj na razvvayuhkhsya rhnkakh kapala [Impac of mrgrs and acqusons n fnancal scor on bddr s rurns n mrgng capal marks], Korporavnh fnansh, 4 (8, Grgorjva, S. A., & Trockyj, P. V. (01. Vlyan slyanyj poglohnyj na opraconnuyu hffkvnosj kompanyj na razvvayuhkhsya rhnkakh kapala [Th Impac of Mrgrs and Acqusons on Company Prformanc n Emrgng Capal Marks], Korporavnh fnansh, (, 1-4. Hand, J., & Landsman, W. (1999. Th Prcng of Dvdnds n Equy Valuaon. Journal of Busnss Fnanc & Accounng, (-4, Ivashkovskaya, I. V., Shamrava, S. A., & Grgorad, E. E. (009. Ehmprchskyj analz hffkvnos korporavnoyj dvrsfkac na rasuhkh rhnkakh kapala na prmr grupph BRIK [An Emprcal Analyss of Effcncy of Corpora Dvrsfcaon n Emrgng Marks: Evdnc from BRIC Counrs]. Ehkonomchskyj zhurnal Vhsshyj shkolh hkonomk, 1 (, Manravad, P., & Rddy, A. V. (008. Pos-mrgr prformanc of acqurng frms from dffrn ndusrs n Inda. Inrnaonal Rsarch Journal of Fnanc and Economcs,, Ohlson, J. A. (1995. Earnngs, book valus and dvdnds n scury valuaon. Conmporary Accounng Rsarch, 11 (, Pnman, S. H. (007. Fnancal Samn Analyss and Scury Valuaon, rd don. London, McGraw Hll.

10 Ran, N., Yadav, S. S., & Jan, P. K. (014. Impac of Domsc and Cross-Bordr Acqusons on Acqurr Sharholdrs Walh: Emprcal Evdnc from Indan Corpora. Inrnaonal Journal of Busnss and Managmn, 9 (, Volkov, D. L., Brznc, I V. (006. Upravln cnnosjyu: problma dosovrnos bukhgalrskkh modlyj ocnvanya [Valu managmn: h problm of h accuracy of h accounng-basd quy valuaon modls], Vsnk Sank-Prburgskogo unvrsa. Srya 8. Mndzhmn, 4 (1, -0. Wong, A., Chung, K. Y., & Mun, T. (009. Th Effcs of Mrgr and Acquson Announcmns on h Scury Prcs of Bddng Frms and Targ Frms n Asa. Inrnaonal Journal of Economcs and Fnanc, (1, Appndx Ls of varabls for h rgrsson modl Varabl Dscrpon Dpndn varabls Dfnvalu Effc of M&A dal a h acqurr s fundamnal valu pr shar (quaon 10 Eff Effc of M&A dal mpac a valu craon or dsrucon: 1 f > 0; 0 f < 0 Covaras Dom Dal s counry of orgn: 1 domsc dal (acqurng and arg compans ar from on counry; 0 nrnaonal dal (acqurr and arg ar from dffrn counrs Comdalyr Yar of h dal: Dalval Valu (sz of h dal, housands of Euro Doargval Valu of a arg company, housands of Euro Modfnc Prmum pad for an acquson, housands of Euro Acqsak Th sak acqurd va h dal, % Prdmarkcap Mark valu of an acqurr bfor h dal, housands of Euro Dummy varabls 1 machng h yp; 0 ohrs Dal yp Dypacq Acquson dypcapncr Capal ncras Dypmnorsak Acquson of a mnor sak Dal fnancng Dfncapncr Capal ncras dfncapnj Capal njcon Dfnconvr Convrbls ssu dfnnwbankfac Nw bankng fnancng dfnprvplac Prva placmn Scor of ndusry ndusarrans Ar ransporaon ndusbank Bankng nduschm Chmcals nduscoal Coal manufacurng ndusconsrsup Consrucon marals ndusfnsvcs Fnancal srvcs ndusfdproc Food procssng ndusmach Machn buldng ndusmmn Mals mnng ndusolgas Ol and gas nduspow Enrgy producon ndusrals Ral sa ndussl Mals procssng nduslc Tlcommuncaons Mhod of dal paymn dmpaymcash Cash dmpaymconvd Convrbl db dmpaymdassum Db dmpaymdfpaym Dfrrd paymn dmpaymou Earn-ou dmpaymshar Shar-pad

9. Simple Rules for Monetary Policy

9. Simple Rules for Monetary Policy 9. Smpl Ruls for Monar Polc John B. Talor, Ma 0, 03 Woodford, AR 00 ovrvw papr Purpos s o consdr o wha xn hs prscrpon rsmbls h sor of polc ha conomc hor would rcommnd Bu frs, l s rvw how hs sor of polc