GONCHAR V., KALININ O. (2024) SPECIFIC FEATURES OF ECONOMIC SECURITY SYSTEM FORMATION IN THE IMPLEMENTATION OF PARTNERSHIP DURING MERGERS AND ACQUISITIONS. Strategic Partnership in Business: Theory, Methodology, Practice / Edited by M.P. Sahaidak. Kyiv: KNEU. pp. 257-277.
DOI: http://doi.org/10.35668/978-966-926-502-9-12
Гончар В.В., Калінін О.В. Особливості формування системи економічної безпеки при запровадженні партнерства в умовах злиття та поглинання. Стратегічне партнерство в бізнесі: теорія, методологія, практика : монографія / За заг. ред. М.П. Сагайдака Київ: КНЕУ, 2024. С. 257-277.
DOI: http://doi.org/10.35668/978-966-926-502-9-12
SPECIFIC FEATURES OF ECONOMIC SECURITY SYSTEM FORMATION IN THE IMPLEMENTATION OF PARTNERSHIP DURING MERGERS AND ACQUISITIONS
GONCHAR Viktoriya, DSс, Professor of Management Department Kyiv National Economic University named after Vadym Hetman, Ukraine, https://orcid.org/0000-0002-8765-6656, gonchar.viktoryia@kneu.edu.ua
KALININ Oleksandr, DSс, Professor of Management Department Kyiv National Economic University named after Vadym Hetman, Ukraine, https://orcid.org/0000-0001-5238-0525, oleksandr.kalinin@kneu.ua
Abstract. The focus of this study is the management system governing the economic security of a country and the repercussions of the shadow economy's influence on it. The research is exemplified by Ukraine, a nation with a notably high prevalence of clandestine activities in its business processes.
At present, shadow incomes and agreements pose significant challenges to the income distribution and redistribution management system. The global nature of the economy and the deregulation of international mergers and acquisitions extend the impact of shadow capital beyond individual countries, bestowing it with global significance for the economic security of various nations. The study delves into the influence of the shadow economy on every stage of merger and acquisition agreements in Ukraine. It scrutinizes the adverse effects of shadow practices on attracting foreign and domestic investments, thereby diminishing the efficacy of the country's economic security management system. The article provides a comparative analysis of the country's economic development indices and the level of the shadow economy.
Throughout the research, various methods such as analysis and synthesis, logical design, and tabular and graphical data presentation are employed. Correlation-regression analysis is applied to explore the relationship between shadow economy indicators and the state's economic security level.
Using statistical indicators, a comparison is made between the shadow economy's development and specific economic security metrics in Ukraine. Correlation-regression analysis is utilized to scrutinize the connection between illicit economy indicators and the state's economic security level amid geopolitical transformations. The results of the calculations reveal a direct relationship for most indices of economic security and the level of the shadow economy. These identified dependencies can serve as a foundation for shaping key vectors of state policy to counteract the expansion of the shadow economy and devising tools to impact the most vulnerable indicators in Ukraine's economic development.
The findings presented in this article can prove beneficial for researchers exploring economic security management systems and governmental institutions aiming to formulate an economic security program. The methodology can be applied to establish investment priorities grounded in the analysis of the illegal economy's impact on societal economic security.
Keywords: shadow economy, economic security, state structures, mergers and acquisitions, management system, economic reform, economic partnership.
References
1. Kovac D, Vukovic V, Kleut N, Podobnik B (2016) To Invest or Not to Invest, That Is the Question: Analysis of Firm Behavior under Anticipated Shocks. PLoS ONE 11(8): e0158782. https://doi.org/10.1371/journal.pone.0158782
2. Ritter, J.R., Signori, A. and Vismara, S., (2013) Economies of scope and IPO activity in Europe. Handbook of research on IPOs.
3. The Next Normal Emerging stronger from the coronavirus pandemic (2021) Available at: https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis
4. Carbonara, G. and Caiazza, R., (2009) Mergers and acquisitions: Causes and effects. The Journal of American Academy of Business, Cambridge, 14(2), pp.188-194.
5. Draft law No. 1048 "On Amendments to the Customs Code of Ukraine on Certain Issues of the Functioning of Authorized Economic Operators". Available at: https://biz.liga.net/all/all/novosti/vr-prinyala-zakonoproekt-otkryvayuschiy-granitsy-dlya-biznes
6. Moschieri, C. and Campa, J.M., (2014) New trends in mergers and acquisitions: Idiosyncrasies of the European market. Journal of Business Research, 67(7), pp.1478-1485.
7. Del Bo, C.D., Ferraris, M. and Florio, M., (2017) Governments in the market for corporate control: Evidence from M&A deals involving state-owned enterprises. Journal of comparative economics, 45(1), pp.89-109.
8. Aiello, R.J. and Watkins, M.D., (2000) The fine art of friendly acquisition. Harvard business review, 78(6), pp.100-107.
9. Campa, J.M. and Moschieri, C., (2008) The European M&A industry: Trends, patterns and shortcomings. IESE Business School, University of Navarra.
10. Nyborg, K. G., & Östberg, P. (2014) Money and liquidity in financial markets. Journal of Financial Economics, 112(1), 30-52. https://doi.org/10.1016/j.jfineco.2013.12.003
11 Andrieș, A.M. and Vîrlan, C.A., (2017) Risk arbitrage in emerging Europe: are cross-border mergers and acquisition deals more risky? Economic research-Ekonomska istraživanja, 30(1), pp.1367-1389.
12. Firstbrook, C., (2007) Transnational mergers and acquisitions: how to beat the odds of disaster. Journal of Business Strategy.
13. Delpini D, Battiston S, Caldarelli G, Riccaboni M (2019) Systemic risk from investment similarities. PLoS ONE 14(5): e0217141. https://doi.org/10.1371/journal.pone.0217141
14. Huyghebaert, N. and Luypaert, M., (2013) Value creation and division of gains in horizontal acquisitions in Europe: the role of industry conditions. Applied Economics, 45(14), pp.1819-1833.
15. Defrancq, C., Huyghebaert, N. and Luypaert, M., (2021) Influence of acquirer boards on M&A value creation: Evidence from Continental Europe. Journal of International Financial Management & Accounting, 32(1), pp.21-62.
16. Hopkin, P. (2012) Fundamentals of risk management: understanding evaluating and implementing effective risk management/ Paul Hopkin - 2nd ed.
17. John, A., Lawton, T. and Meadows, M., (2018) Managing cross-border M&A: Three approaches to takeovers in Europe. In The Routledge Companion to European Business (pp. 282-294). Routledge.
18. World bank (2021) Doing Business. Available at: https://archive.doingbusiness.org/en/data/exploretopics/getting-credit
19. The law of Ukraine On making changes to some legislative acts of Ukraine regarding the stimulation of investment activities in Ukraine (Information of the Verkhovna Rada (VR), 2019, No. 46, Article 299
20. Li Y, Zheng B, Chen T-T, Jiang X-F (2017) Fluctuation-driven price dynamics and investment strategies. PLoS ONE 12(12): e0189274. https://doi.org/10.1371/journal.pone.0189274
21. KPMG (2022, 3 February) 2021 was a blowout year for M&A Available at: https://inventure.com.ua/analytics/investments/2021-god-stal-rekordnym-dlya-mirovogo-rynka-manda
22. Liu, Y. (2022) Credit Resource Availability and Innovation Output: Evidence from Chinese Industrial Enterprises. Journal of Applied Finance & Banking, 12(1), 1-26.
23. Mateev, M., (2017) Is the M&A announcement effect different across Europe? More evidences from continental Europe and the UK. Research in International Business and Finance, 40, pp.190-216.
24. Thomson reuters (2021) Public Mergers and Acquisitions in the Netherlands: Overview Other Regulatory Restrictions. Available at: https://uk.practicallaw.thomsonreuters.com/3-502-0666?transitionType=Default&contextData=(sc.Default)&firstPage=true
25. Verheij, D., (2019) Performance of high-tech country and sector cross border M&A acitivities in Europe.
26. Law of Ukraine About making amendments to the Law of Ukraine "On everyday norms" to improve the standardization of everyday life. Available at: https://zakon.rada.gov.ua/laws/show/156-20
27. Pandey, G., & Sidharth, O. (2021) The Impact of Covid-19 on Merger and Acquisition. Issue 6 Int'l JL Mgmt. & Human., 4, 213.
28. Shadow economy. General trends 2020 (2021) Analytical note of the Department of Planning and Macroeconomic Forecasting of the Ministry of Economy of Ukraine. Available at: https://nrat.ukrintei.ua/en/tinova-ekonomika-zagalni-tendencziyi-2020/
29. Schmid, A.S., Sánchez, C.M. and Goldberg, S.R., (2012) M&A today: Great challenges, but great opportunities. Journal of Corporate Accounting & Finance, 23(2), pp.3-8.
30. Wan, W. P., Hoskisson, R. E., Short, J. C., & Yiu, D. W. (2011) Resource-based theory and corporate diversification: Accomplishments and opportunities. Journal of Management, 37(5), 1335-1368. https://doi.org/10.1177/0149206310391804
31. Koval, V., Gonchar, V., Udovychenko, V., Kalinin, O., Slobodianiuk, O., & Soloviova, O. (2023) Risk management analysis of environmental investment in economic security. Journal of Geology, Geography and Geoecology, 32(3), 540-549. DOI: https://doi.org/10.15421/112348