The factors driving the synergy value in mergers of mechanical engineering companies in the Czech Republic

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F18%3APU128896" target="_blank" >RIV/00216305:26510/18:PU128896 - isvavai.cz</a>

Výsledek na webu

<a href="http://www.jois.eu/index.php?459,en_the-factors-driving-the-synergy-value-in-mergers-of-mechanical-engineering-companies-in-the-czech-republic" target="_blank" >http://www.jois.eu/index.php?459,en_the-factors-driving-the-synergy-value-in-mergers-of-mechanical-engineering-companies-in-the-czech-republic</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14254/2071-8330.2018/11-3/19" target="_blank" >10.14254/2071-8330.2018/11-3/19</a>

Jazyk výsledku

angličtina

Název v původním jazyce

The factors driving the synergy value in mergers of mechanical engineering companies in the Czech Republic

Popis výsledku v původním jazyce

Research into factors that influence the outcome of mergers and acquisitions conducted over a few past decades focused on two areas, one being the forecasting of the volume of expected investments, the other investigating M&A efficiency, i.e. the search for the factors that drive the growth of value of combined firms (identification of the sources of synergy). Operating synergies, resulting from cost savings and investment reduction, are deemed the primary source of synergy. Determining the synergy value is a prerequisite for identifying sources of savings. This paper presents the results of research aimed at determining the synergy value and identifying the factors representing potential sources of synergy. The discounted capital cash flow method was used to determine the synergy value In the set of 50 mergers carried out between 2004 and 2011 that we investigated, we found that a negative synergy effect developed at an average level of 8.13%. This means that most of these mergers were not associated with additional profits for the owners. The correlation between the selected financial ratios and the synergy value was tested. The results show that there is a statistically significant relationship between the indicators based on cash flow and the synergy value.

Název v anglickém jazyce

The factors driving the synergy value in mergers of mechanical engineering companies in the Czech Republic

Popis výsledku anglicky

Research into factors that influence the outcome of mergers and acquisitions conducted over a few past decades focused on two areas, one being the forecasting of the volume of expected investments, the other investigating M&A efficiency, i.e. the search for the factors that drive the growth of value of combined firms (identification of the sources of synergy). Operating synergies, resulting from cost savings and investment reduction, are deemed the primary source of synergy. Determining the synergy value is a prerequisite for identifying sources of savings. This paper presents the results of research aimed at determining the synergy value and identifying the factors representing potential sources of synergy. The discounted capital cash flow method was used to determine the synergy value In the set of 50 mergers carried out between 2004 and 2011 that we investigated, we found that a negative synergy effect developed at an average level of 8.13%. This means that most of these mergers were not associated with additional profits for the owners. The correlation between the selected financial ratios and the synergy value was tested. The results show that there is a statistically significant relationship between the indicators based on cash flow and the synergy value.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50602 - Public administration

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název periodika

JOURNAL OF INTERNATIONAL STUDIES

ISSN

2071-8330

e-ISSN

2306-3483

Svazek periodika

11

Číslo periodika v rámci svazku

3

Stát vydavatele periodika

PL - Polská republika

Počet stran výsledku

16

Strana od-do

239-254

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85055592409