Informace o publikaci

Impact of Mergers on the Company Performance

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VALOUCH Petr NEŠLEHA Josef

Rok publikování 2018
Druh Článek ve sborníku
Konference Proceedings of the 15th International Scientific Conference European Financial Systems 2018
Fakulta / Pracoviště MU

Ekonomicko-správní fakulta

Citace
Klíčová slova Merger; impact; profitability; ROE; statistical test
Popis The paper deals with the impact of a merger on the company financial profitability. A merger usually leads to a stronger position on the market as this is the most frequent reason why companies decide to venture into such a form of synergy. For th e purposes of this research, the following criterion has been taken into account when defining the company performance: ROE (Return On Equity). The test is based on a comparison of the indicators at the moment of the merger and five years after the moment of the merger. To enhance the validity of the test, companies that experienced a merger and companies that have not experienced it are used. The usage of both of the files should help to confirm that the merger itself stands for the indicators improvement. In total, the data file consists of 277 merged companies and 232 companies that have never merged.
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