The impact of mergers and acquisitions transactions on the economic development

Abstract

One of the most important factors that determine the competitiveness of any country is the effective functioning of its business environment. For continuous development and becoming a leader in the conditions of tough global competition, the country needs a class of effective and efficient owners who can bring companies to the highest level and who care about their improvement. Mergers and acquisitions (M&A) are one of the mechanisms for redistributing property, thus determining how the national economy will function in the future. Mergers and acquisitions are a current dynamic trend in the development of modern corporations. The main reason for this rapid growth is competition, which forces companies to actively seek investment opportunities, effectively use all available resources, and optimize costs. The impact of M&A transactions on the country's economy has been examined by researchers from different countries, both developed and developing. However, the impact of such M&A agreements on countries' economic growth has been assessed as controversial.