Acta Univ. Agric. Silvic. Mendelianae Brun. 2011, 59(7), 337-346 | DOI: 10.11118/actaun201159070337

Development of mergers and acquisitions in the conditions of the Czech economy 2001-2010

Jaroslav Sedláček, Zuzana Křížová, Eva Hýblová
Katedra financí, Masarykova univerzita, Lipová 41a, 602 00 Brno, Česká republika

This paper presents the first results of a research project which has the aims to identify the problems appearing during the preparation of mergers in compliance with valid Czech regulations and to analyze economic causes and consequences of mergers. At the first stage it was necessary to compile a basic dataset in a structure needed for a statistical analysis. The aim of the analysis presented in this paper is to ascertain, both theoretically and empirically, how the external environment affected the development of mergers of trading companies in the conditions of the Czech economy. The covered period is the past ten years, i.e. 2001-2010, when the development of the global economy was affected by the bank crisis in the USA and the economic recession.
The analysis of the development of mergers and acquisitions focuses on three groups of factors affecting activities in the field of company combinations. These are mergers and acquisitions which are subject to approval by regulatory bodies, the effect of new regulations of financing (financial factors) and the effect of the macroeconomic situation in the form of GDP indicator and PX index. Macroeconomic indicators are related to mergers whose development has not been published or explored within scientific research. The results of the analysis allowed us to describe the dependence of activities in the field of company mergers which took place in the Czech Republic in the past decade on the selected factors of the external environment.

Keywords: company transformations, types of mergers, merger development, affecting factors, macroeconomic environment, measurement methods
Grants and funding:

The paper contains first results of project of Grant Agency CR No. 403/11/0447 The Analysis of Taxation and Accounting Procedures during Mergers. The project solution, which will be conducted in 2011-2013, was entrusted to the team of the Department of Finance, Faculty of Economics and Administration, Masaryk University in Brno.

Received: July 21, 2011; Published: January 26, 2014  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Sedláček, J., Křížová, Z., & Hýblová, E. (2011). Development of mergers and acquisitions in the conditions of the Czech economy 2001-2010. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 59(7), 337-346. doi: 10.11118/actaun201159070337
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. ALLEN & OVERY, 2011: The Allen & Overy M&A Index, Q4 2010 Insight Report, [on-line]. [Accessed 2011-05-15]. Available at.
    2. BANK OF AMERICA, 2007: Annual Report. [on-line]. [Accessed 2011-05-16]. Available at.
    3. BOHUŠOVÁ, H., 2011: General aproach to the IFRS and US GAAP convergence. Acta univ. agric. et silvic. Mendel. Brun., LIX, 4: 27-36. ISSN 1211-8516. DOI: 10.11118/actaun201159040027 Go to original source...
    4. BAYAZITOVA, D., KAHL, M., VALKANOV, R., 2010: Which Mergers Destroy Value? Only Mega-Mergers. [on-line]. University of Colorado: Leeds School of Business [Accessed 2011-06-23]. Available at.
    5. BOBENIC-HINTOS, A., 2009: Waves of mergers and acquisitions, Acta oeconomica cassoviensia, 2, 1: 13-21. ISSN 1337-6020.
    6. BREALEY, R. A., MYERS, S. C., 2000: Theory and Practice of Corporate Finance. Prague: Computer Press, 1028 p. ISBN 0-07-295723-9.
    7. BRUNER, R. F., 2004: Applied mergers and acquisitions. Hoboken: John Wiley & Sons Inc., 1029 p. ISBN 0-471-39506-4.
    8. CASSIMAN, B., COLOMBO, M. G., 2006: Mergers & acquisitios: the innovation im pact. Cheltenham: Edward Elgard, 200 p. ISBN 1-84-542659-2.
    9. CHALLE, E., RAGOT, X., 2011: Bubbles and Self-Fulfilling Crises. The B.E. Journal of Macroeconomics, 11, 1. [on-line]. [Accessed 2011-05-10]. Available at. Go to original source...
    10. CVCA, 2010: [on-line]. [Accessed 2011-06-21]. Available at.
    11. CZECH NATIONAL BANK, 2011: PX 50. [on-line]. [Accessed 2011-06-14]. Available at.
    12. CZECH STATISTICAL OFFICE, 2011: ARAD. [on-line]. [Accessed 2011-06-16]. Available at.
    13. CZ OFFICE FOR THE PROTECTION OF COMPETITION, 2011: [on-line]. [Accessed 2011-06-29]. Available at.
    14. EUROPEAN COMMISSION, 2011: COMPETITION, 2011: [on-line]. [Accessed 2011-06-29]. Available at.
    15. FRITSCH, M., GLEISNER, F., HOLZHÄUSER, M., 2007: Bank M&A in Central and Eastern Europe. [online]. [Accessed 2011-06-30]. Available at.
    16. GOLE, W. J., HILGER, P. J., 2008: Corporate Divestitures: A Mergers and Acquisitions Best Practices Guide. Hoboken: John Wiley & Sons Inc., 299 p. ISBN 978-0-470-18000-6.
    17. HODES-KROPF, M., VISWANATHAN, S., 2004: Market Valuation and Merger Waves. The Journal of Finance, 59, 6: 2685-2718. ISSN 0022-1082. DOI: 10.1111/j.1540-6261.2004.00713.x Go to original source...
    18. KLING, G., WEITZEL, U., 2009: Endogenous Mergers: Bidder Momentum and Market Reaction, Applied financial Economics, 20, 3: 243-254, ISSN 0960-3107. DOI: 10.1080/09603100903282663 Go to original source...
    19. LANDA, M., MARTINOVIČOVÁ, D., 2010: Approaches to evaluation of changes in capital structure in industrial branches. Acta univ. agric. et silvic. Mendel. Brun., LVIII, 6: 259-268. ISSN 1211-8516. DOI: 10.11118/actaun201058060259 Go to original source...
    20. LEVY, H., SARNAT, M., 1999: Capital Investment and Financial Decision. Prague: Grada Publishing, 920 s. ISBN 80-7169-504-1.
    21. LIPTON, M., 2006: Merger Waves in the 19th, 20th and 21st Centuries, [on-line]. York University: Osgoode Hall Law School. [Accessed 2011-05-12]. Available at..
    22. MARTYNOVA, M., RENNEBOOK, L., 2008: The Performance of the European Market for Corporate Control: Evidence from the 5th Takeover Wave, [on-line] Sheffield University: Management School. [Accessed 2011-05-11], Available at.
    23. NATIONAL BUREAU OF ECONOMICS RESEARCH, 2010: Report of Business Cykle Dating Committee. [on-line], [Accessed 2011-05-18], Available at.
    24. ROSEN, R. J., 2006: Merger Momentum and Investor Sentiment: The Stock Market Reaction to Merger Announcements. The Journal of Business, 79, 2: 1-38. ISSN 0021-9398. DOI: 10.1086/499146 Go to original source...
    25. SEDLÁČEK, J., 2007: Analysis of the Financial Burden of the Czech Enterprises in Period 1996-2005. Journal of Economics, 55, 6: 582-593. ISSN 0013-3035.
    26. SKÁLOVÁ, J., 2010: Complicated transfer of tax losses between entities in the countries of the European Union. Czech Finance and Accounting Journal, 5, 4: 7-18. ISSN 1802-2200. Go to original source...
    27. TEPLÝ, P., STÁROVÁ, H., ČERNOHORSKÝ, J., 2010: Value Creation of European Bank Mergers and Acquisitions in the 1998 -2007 Period. Journal of Economics, 58, 5: 458-470. ISSN 0013-3035.
    28. THOMSON REUTERS, 2011: [on-line]. [Accessed 2011-06-19]. Available at.
    29. TRADE REGISTER, 2011: [on-line]. [Accessed 2011-05-16]. Available at.
    30. WEST'S ENCYCLOPEDIA OF AMERICAN LAW, 2011: [on-line]. [Accessed 2011-06-18]. Available at.
    31. WIRTZ, B. W., 2003: Mergers & acquisitios: Management: Strategie und Organisation Unternehmenszusammenschlűssen. Wiesbaden: Gabler, 521 p. ISBN 3-40-911994-9.

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content