Synergic motives and economic success of mergers of Czech companies.
| Authors | |
|---|---|
| Year of publication | 2013 |
| Type | Article in Periodical |
| Magazine / Source | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| MU Faculty or unit | |
| Citation | |
| Doi | http://dx.doi.org/10.11118/actaun201361072721 |
| Field | Economy |
| Keywords | company transformation; merger development; motives for mergers and acquisitions; synergy; methods for measurement of economic effects of mergers; hypothesis testing; assessment of merger success |
| Description | The basis of our investigation is the database of the companies that implemented a merger within 2001–2009; out of these, the companies that published their financial statements in a digitalized form were selected. We monitored the development of six indicators characterizing the economic status of a company. The values of these indicators were compared for all participating companies before the merger and for the successor company three years after the merger. The hypotheses were formulated so that they expressed an expectation of a positive synergy brought about by mergers. However, hypothesis testing has not provided a clear result. A positive effect of a merger on the key indicator of net assets, whose growth means an increase in the accounting value of the company after the merger, has been proved for small and medium-sized companies only. The effect of mergers on the increase in indicators has been confirmed for retained earnings from past years and personal costs. |
| Related projects: |