Mergers of Trading Companies and Causes of Their failure
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F18%3A00101325" target="_blank" >RIV/00216224:14560/18:00101325 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.5755/j01.ee.29.4.8868" target="_blank" >http://dx.doi.org/10.5755/j01.ee.29.4.8868</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.5755/j01.ee.29.4.8868" target="_blank" >10.5755/j01.ee.29.4.8868</a>
Alternative languages
Result language
angličtina
Original language name
Mergers of Trading Companies and Causes of Their failure
Original language description
This paper presents the results of research on the efficiency of mergers carried out in the Czech Republic. The aim of the research is to find out if the mergers have met the expectations of the management and the owners of the merging companies. The methodology of the solution is based on the determination of the success factors of mergers, the classification of the level achieved by the mergers, the separation of the successful ones from the unsuccessful ones, the identification of the problems and the formulation of the hypotheses. The object of the analysis is a representative sample of mergers of all those carried out in the Czech territory at the interval of 6 years. The effect of the company size on the success of mergers is also examined. The results were verified testing the hypotheses with empirical data. The tests performed with the data taken from financial statements of the recent 7 years have confirmed that failure of mergers can be expected in 55 %–68 % of the basic set, i.e. all mergers implemented in the monitored period, with 95 % reliability. Research has found no direct correlation between the size of the acquiring company and the success of the merger. The results of the questionnaire research lead us to the conclusion that the highest risk in merger implementation in the Czech conditions is maintaining of employees and customers; on the other hand, a merger that follows an acquisition and thus represents finishing of the transformation process of a company seems to be trouble-free.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
<a href="/en/project/GAP403%2F11%2F0447" target="_blank" >GAP403/11/0447: Analysis of tax and accounting procedures in mergers</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Engineering Economics
ISSN
1392-2785
e-ISSN
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Volume of the periodical
29
Issue of the periodical within the volume
4
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
8
Pages from-to
397-404
UT code for WoS article
000448820500004
EID of the result in the Scopus database
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