False friends? On the effect of bureaucracy, informality, corruption and conflict in Ukraine on foreign and domestic acquisitions

Artikel

Ukraine had had its ups and downs in recent years. It has, for example, dramatically improved its ease of doing business (EOBB), and it has made some progress reducing the relative size and influence of its shadow economy (Shadow). But, the Russian invasion of 2014 (Conflict) forced it to take a few developmental steps backwards. In this paper, we consider the effect of these factors, positive and negative, on the number of mergers and acquisitions, involving Ukrainian firms. We construct a sample of 4030 acquisitions in the period 1 January 2000-31 December 2020. Our results suggest that while the number of acquisitions by domestic firms increases in efficiency (+EOBB), transparency (−Shadow) and peace (−Conflict), the number of foreign acquisitions increases in bureaucracy (−EOBB), in informality (+Shadow), and unrest (+Conflict). From an academic perspective, our findings fit with some recent work, while providing new insights too. From a policy perspective, our findings that the number of foreign acquisitions is negatively affected by Ukraine's attempts to modernize and improve its economy and is positively affected by the ongoing conflict with Russia, makes us wonders what type of 'false friends' make such investments.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 15 ; Year: 2022 ; Issue: 4 ; Pages: 1-14

Classification and Topics

• Classification: Management
• Subject: conflict ; ease of doing business index ; institutional forces ; merger motives ; merger trends ; mergers and acquisitions ; shadow economy ; Ukraine ; Ukrainian mergers and acquisition

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gonchar, Viktoriya ; Kalinin, Oleksandr ; Khadzhynova, Olena ; McCarthy, Killian J.
• Event: Veröffentlichung
• (who): MDPI
• (where): Basel
• (when): 2022

Further information

• DOI: doi:10.3390/jrfm15040179
• Handle: http://hdl.handle.net/10419/274701
• Last update: 10.03.2025, 11:42 AM CET