Assessing the Existence of Synergistic Effect in the Consolidated Accounting Entities in the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F18%3APU128037" target="_blank" >RIV/00216305:26510/18:PU128037 - isvavai.cz</a>

Alternative codes found

RIV/62156489:43110/18:43915004 RIV/62156489:43310/18:43915004

Result on the web

<a href="https://businessperspectives.org/journals/investment-management-and-financial-innovations/issue-281/assessing-the-existence-of-synergistic-effect-in-the-consolidated-accounting-entities-in-the-czech-republic" target="_blank" >https://businessperspectives.org/journals/investment-management-and-financial-innovations/issue-281/assessing-the-existence-of-synergistic-effect-in-the-consolidated-accounting-entities-in-the-czech-republic</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.21511/imfi.15(2).2018.27" target="_blank" >10.21511/imfi.15(2).2018.27</a>

Result language

angličtina

Original language name

Assessing the Existence of Synergistic Effect in the Consolidated Accounting Entities in the Czech Republic

Original language description

The objective of the research was to identify possible positive synergistic effect of concerns. Because of the advantages of the existence of consolidated financial statements we focused on the Czech consolidated groups. Consolidated financial statements of 719 groups of accounting entities – concerns in the Czech Republic were studied, i.e., the statistical population consisted of 719 reporting units, which can be considered as the total population of all published consolidated financial statements. Following economic indicators were analyzed to discover the existence of positive synergistic effect: cash position ratio, return on equity, return on sales. Based on the research we concluded, that Return on equity revealed dependency between change in the value of the indicator of the parent company and consolidated unit. Values of this indicator are interesting from the investment point of view. They confirm success of capital acquisitions. Cash ratio monitoring revealed an inconsistent environment, unambiguous data correlation between the group data and the individual financial statements of the parent companies. Return on sales indicator showed that consolidated groups had reached higher values of the indicator, i.e., lower total cost ratio than parent companies. Data correlation was found on the low level, i.e., the parent companies did not influence consolidated data. Acquisition companies in the Czech Republic in period 2008-2013 generated positive financial synergy. For financial indicator of return on equity was confirmed dependence between consolidated groups and parent companies. Positive financial synergy was found out for all monitored financial indicators.

Czech name

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Czech description

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Type

J_ost - Miscellaneous article in a specialist periodical

CEP classification

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OECD FORD branch

50205 - Accounting

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2018

Confidentiality

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

Name of the periodical

Investment Management and Financial Innovations

ISSN

1810-4967

e-ISSN

1812-9358

Volume of the periodical

15

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

12

Pages from-to

305-316

UT code for WoS article

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EID of the result in the Scopus database

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