Subject The article considers mergers and acquisitions (M&A) in the Russian banking sector. Objectives The purpose is to evaluate the M&A performance in the Russian banking sector over 2006–2014, and identify factors affecting the efficiency. Methods We systematized and described the main approaches to assessing the M&A effectiveness, focusing on the accumulated excess return. The research rests on the cumulative excess return method and statistical analysis. Results We reviewed 166 mergers and acquisitions over 2006–2014 initiated by banks (rather than other type of financial and credit institution). The study proved our two hypotheses we suggested. First, the acquirer achieves positive cumulative excess return within a short-term observation window. Second, characteristics of transaction (the size of acquired share, the country of the target company, diversification) have different effects on the accumulated excess return of the acquirer, depending on the period in which the transaction was made (before, during, or after crisis). Conclusions In the same industry, diversifying transactions achieve accumulated positive excess return less frequently than transactions aimed at concentration of capital.
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