1. Introduction

Economic activities both inside and outside of a country have direct effects on the firms operating in that country. Furthermore, firm-specific activities such as mergers & acquisitions (M&As), declaring loss, an important exports deal have positive or negative effect on the firms' market value according to the nature of the event.

© 2018 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

© The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and eproduction in any medium, provided the original work is properly cited.

Aim of the study is to investigate how economic crisis originated in developed countries have affected developing economies. Therefore, we examined the mergers & acquisitions activities of banking sector in BRICS-T countries. Lehman Brothers' crash in September 2008 is assumed to be the trigger of the global financial crisis [1]. With this reasoning, we analyzed cumulative abnormal returns in precrisis (January 2004–September 2008) and postcrisis (November 2008–December 2013) periods to check if there are any differences between these periods. Brazil has negative mean cumulative abnormal returns in pre crisis period as well as the post crisis period. Russia has negative mean cumulative abnormal returns in precrisis period while mean cumulative abnormal returns for Russia are positive in postcrisis period. India has negative mean cumulative abnormal returns in precrisis period, which switches to positive in postcrisis period. China, in the opposite, has positive mean cumulative abnormal returns before crisis but negative mean cumulative abnormal returns after crisis. The mean cumulative abnormal returns in South Africa are positive in the precrisis period and negative in the post crisis period. Turkey has positive mean cumulative abnormal returns in both periods.

Section 2 introduces a literature review about M&As in BRICS-T countries in three different parts. First, literature about M&As during financial crisis is mentioned. Then, literature on abnormal returns in M&As during financial crisis is examined. Finally, financial overview of BRICS-T countries is investigated and shared. In Section 3, data and methodology are mentioned as well as the empirical results. The study is concluded with Section 4.
