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Financial Analytics: Science and Experience
 

Analyzing the impact of mergers and acquisitions on the profitability of seller company shares in the oil and gas industry of Russia

Vol. 15, Iss. 2, JUNE 2022

Received: 27 March 2022

Received in revised form: 8 April 2022

Accepted: 19 April 2022

Available online: 30 May 2022

Subject Heading: FINANCIAL INSTRUMENTS

JEL Classification: G17, G34

Pages: 128–142

https://doi.org/10.24891/fa.15.2.128

Ekaterina V. KOROLEVA Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation
koroleva_ev@spbstu.ru

https://orcid.org/0000-0003-2640-5906

Polina V. OSYKA Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation
otrubyan_pv@spbstu.ru

https://orcid.org/0000-0003-3384-6101

Vladlen N. SHAKHOV OOO Glavstroi-SPb Specialized Developer, St. Petersburg, Russian Federation
shakhov.vladlen@gmail.com

ORCID id: not available

Subject. We investigate the behavior of profitability of seller's shares in relation to key accompanying events in mergers and acquisitions in the Russian oil and gas industry.
Objectives. The aim is to determine the nature of the impact of dates of merger or acquisition announcement and completion on the profitability of shares of a Russian oil and gas company acting as a seller.
Methods. The study rests on the analysis of mergers and acquisitions, using the event study methods.
Results. The paper shows that announcement and execution of a merger or acquisition transaction positively affect the profitability of seller’s shares in the oil and gas sector of Russia. We constructed models that indicate an increase in the profitability of seller companies relative to projected profitability without a merger or acquisition transaction.
Conclusions. The findings are of practical significance and can be taken into account by financial managers when planning mergers and acquisitions and forecasting their impact on stock returns. Stock market participants may also value the obtained data.

Keywords: stock market, merger, acquisition, forecast model, oil and gas industry

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