Merger Spin-off Project and Its Effect on Financial Health Of Post-Transformation Companies

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21110%2F24%3A00375569" target="_blank" >RIV/68407700:21110/24:00375569 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.52950/ES.2024.13.1.001" target="_blank" >https://doi.org/10.52950/ES.2024.13.1.001</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.52950/ES.2024.13.1.001" target="_blank" >10.52950/ES.2024.13.1.001</a>

Result language

angličtina

Original language name

Merger Spin-off Project and Its Effect on Financial Health Of Post-Transformation Companies

Original language description

The purpose of this article is to examine the impact of business transformation on the financial health of companies undergoing transformation, using bankruptcy indices. Business transformation could be the way to support risk diversification, improve production efficiency, financial performance or implement changes in organizational structure due to changed internal or external conditions. The verification of the financial health of the companies involved should be carried out and documented in order to ensure that no one has been harmed in connection with the transaction, due to the criminal liability of the legal representatives. This is usually done in advance. The advantage of this article is to point out that the verification by means of bank indicators is also suitable to be carried out after the transaction, immediately after and with a time lag, and could be part of the internal control process. A specific type of transformation, the spin-off by merger project, is the focus of this paper. This paper examines the financial health of companies operating in the Czech Republic using Altman's Z-score and IN05 bankruptcy indices. The main contribution of the article is the verification of the applicability of bankruptcy indicators for assessing the impact of the spin-off by merger project on the financial health of companies after transformation for the needs of documenting the actions of statutory directors and other decision makers with the due diligence of a proper manager

Czech name

—

Czech description

—

Type

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

CEP classification

—

OECD FORD branch

50204 - Business and management

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2024

Confidentiality

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

Name of the periodical

International Journal of Economic Sciences

ISSN

1804-9796

e-ISSN

1804-9796

Volume of the periodical

13

Issue of the periodical within the volume

1

Country of publishing house

GB - UNITED KINGDOM

Number of pages

12

Pages from-to

1-12

UT code for WoS article

001228320800005

EID of the result in the Scopus database

—