Importance The paper's significance lies in studying the role of mergers and acquisitions in corporate governance of an entity. Its subject is the features of the benefits of mergers and acquisitions in corporate governance. Objectives The article attempts to clarify the importance of mergers and acquisitions process in corporate governance of an organization. The relevance of the work is conditional on the fact that the process of mergers and acquisitions in various economic sectors in recent years comes under scrutiny not only of the Russian business community and the government agencies, but the general public as well. The business development in the Russian Federation, increased competition, including the Western companies' competition, makes the entities to select the most effective activity strategies. Acquisition of external structures enables to create a competitive advantage, to diversify its business and increase market share, to reduce costs, and also to improve management technologies. Methods The paper aims to solve the following tasks: it analyses global and domestic experience of mergers and acquisitions; it studies mergers and acquisitions in the Russian reality taking into account the effect of saving; it researches the management process inside the corporation after its merger with an information agency. The paper concludes that among the domestic companies there were no cyclic consistent pattern of mergers and acquisitions. This is due to the rapid development of the market prior to the crisis of 2008-2009. After that, the market condition got stabilized, and the number of mergers has increased dramatically. Results The paper shows that in response to the merger of organizations in corporate governance, the effect of economy of scale comes into operation, which will enable to enhance the corporation's financial activity. This kind of policy will enable to attract more financial resources. Conclusions and Relevance The paper comes to a conclusion that during the merger of an organization by a marketing agency, they create "interlocking directorates" that simplify the internal corporation structure management.
Keywords: merger, acquisition, financial mechanism, strategic goal, organizational system
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