How the market reacts at hostile takeovers? Russian and European evidence

The paper "Market reaction at the announcements on hostile takeovers: Russian and European markets" was published by our student Natalia Maricheva and Prof Elena Rogova in Electronic Journal of Corporate Finance

The paper represents the results of empirical testing of market reaction at the announcements on takeovers at

Russian and European financial markets. It contains an attempt to reveal the differences in market reactions

between both friendly acquisitions and hostile takeovers, and European and Russian markets. On the base of

the study, the authors conclude that the difference in the reaction at the information on friendly acquisitions

and hostile takeovers is significantly valuable for all the markets. The information on hostile takeovers causes

the negative reaction elsewhere, but its impact at the Russian market is stronger than the European ones. In

addition, the authors examine the features of the deals and the acquiring companies, and their relationship

with the cumulative abnormal returns caused by acquisitions.

The study is performed by event studies and regression analysis. The sample consists of 220 announcements of

93 public companies from Russia and 6 European countries from different sectors of economy for the period

of 2006–2015.