Efficiency of Mergers of Mechanical Engineering Companies in the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F16%3APU120934" target="_blank" >RIV/00216305:26510/16:PU120934 - isvavai.cz</a>

Result on the web

<a href="https://www.degruyter.com/view/j/revecp.2016.16.issue-4/revecp-2016-0020/revecp-2016-0020.xml" target="_blank" >https://www.degruyter.com/view/j/revecp.2016.16.issue-4/revecp-2016-0020/revecp-2016-0020.xml</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1515/revecp-2016-0020" target="_blank" >10.1515/revecp-2016-0020</a>

Result language

angličtina

Original language name

Efficiency of Mergers of Mechanical Engineering Companies in the Czech Republic

Original language description

This paper presents the research results in the field of the efficiency of mergers and acquisitions in the mechanical engineering industry of the Czech Republic. The aim of this paper is to determine whether mergers taking place in mechanical engineering are successful, or possibly to identify factors which may be deemed as synergies sources. In our research, the success rate of mergers is identified on the basis of the increasing revenues and operating profit. It has been established that out of mergers completed in 2004 – 2011, success has been achieved in approximately half of them. For this reason, we have focused on identifying the factors which may serve as the reasons for such a difference. The selected indicators of the cost-to-revenue ratio and utilization of fixed assets, investments, and net working capital we analysed before and after the mergers in both groups of successful and unsuccessful mergers. The Mann-Whitney U test was used to test the results. The research results have demonstrated that synergies are not achieved due to the change in the market power of the merged companied but owing to operational efficiency which is reflected in a drop in labour costs and depreciation to revenues ratios and increasing asset utilization.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50602 - Public administration

Project

—

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Národohospodářdký obzor

ISSN

1213-2446

e-ISSN

1804-1663

Volume of the periodical

16

Issue of the periodical within the volume

4

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

14

Pages from-to

361-374

UT code for WoS article

000406945200004

EID of the result in the Scopus database

2-s2.0-85008178820