Determinants of Russian Firms' Merger and Acquisition Activities

Abstract

This study explores the economic, geographical, cultural and institutional factors that have driven the cross border Merger and Acquisition activities by Russian transnational corporations during the 1999-2013 period. We find that market-seeking stands out as a significant motive of the Russian firms' merger and acquisition activities, followed by natural resources and efficiency seeking. Russian firms prefer acquiring assets in nearby economies of the former Soviet Union. Moreover, home and host institutions seem to play a minor role in asset acquisition decisions.