Developmental Analysis of Mergers in the Czech Republic 2001–2009 from the Perspective of Ownership Structure
| Authors | |
|---|---|
| Year of publication | 2012 |
| Type | Article in Proceedings |
| Conference | Recent Researches in Business & Economics - Proceedings of the 4th WSEAS World Multiconference on Economics, Business and Development (AEBD’12) |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | company transformations; mergers and acquisitions; foreign owners; domestic owners; regression and correlation analysis; macroeconomics environment; |
| Description | Economically spoken, a company is successful if it brings higher value for its owners. An increase in company value is connected with internal and external development of the business, often in the form of acquisitions and mergers. The subject of this paper is mergers of Czech companies which took place between 2001 and 2009. The study focuses on changes in the structure of ownership in particular quarters of the monitored period and the development in ownership relationships among participating entities. The analysis uses temporal series containing numbers of mergers and volumes of assets of participating entities. The results of the analysis have confirmed a slight increase in the number and volume of mergers implemented under foreign owners’ control in contrast to entities controlled by domestic owners. They have also identified waves of mergers within an annual cycle reflecting the timing of the decisive day and the preparation of the starting balance sheet as of the first day of a new accounting and taxation period. In the Czech conditions, mergers under foreign successor company control prevail, while mergers under domestic control have a negative trend in the monitored period. A positive development trend has been proved for mergers implemented under control by only one owner of all participating entities. |
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