ANALYSIS OF THE IMPACT OF MERGERS AND ACQUISITIONS ON THE COMPANY SOLVENCY

Silvestrova Svetlana Sergeevna1, Morogova Olga Aleksandrovna1
1Natioinal Research University «Higher School of Economics», 4th year student of the faculty of Economics

Abstract
In this paper we analyze the effect of mergers and acquisitions on the company solvency. For analyses we build an econometric solvency assessment model. The research conducted showed that the following variables affect the company solvency: return on assets, profitability of production, return on sales, deal value and return on assets of the target company. The main contribution of this study is finding that, on average, merger and acquisition deals increase the default risk of the acquiring firm.

Keywords: company solvency, logit model, mergers and acquisitions

Article reference:
Analysis of the impact of mergers and acquisitions on the company solvency // Economics and innovations management. 2015. № 5 [Electronic journal]. URL: https://ekonomika.snauka.ru/en/2015/05/9183

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