Acta Univ. Agric. Silvic. Mendelianae Brun. 2015, 63(1), 271-280 | DOI: 10.11118/actaun201563010271

Motives for Combinations of Trading Companies

Jaroslav Sedláček, Eva Hýblová, Petr Valouch
Department Finance, Faculty of Economics and Administrations, Masaryk University, Lipová 41a, 602 00 Brno, Czech Republic

The subject of this paper is an analysis of the development of activities at the European as well as the Asian market of foreign direct investments (FDI) and mergers and acquisitions (M & A). Causes of mergers and acquisitions and their development mainly in the period after the financial and economic world crisis are examined. A partial study focused on the merger market in the Czech Republic. The analysis results show that FDI inward dominate in the Asian market in contrast to more developed European and American markets where prevail FDI outward. The motivations for the activities in M & A markets are changed in dependence on the development tendencies of the world economy, politics, continuing liberalization of investment regimes, and implementation of the internationalization strategy on a large scale. The results of our study confirmed the hypothesis, that the main motive was the attainment of microeconomic advantages of the merging entities.

Keywords: company transformations, development of mergers and acquisitions, foreign direct investments, motives for M & A, synergic effect, value for owners
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.

Prepublished online: March 14, 2015; Published: April 1, 2015  Show citation

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Sedláček, J., Hýblová, E., & Valouch, P. (2015). Motives for Combinations of Trading Companies. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 63(1), 271-280. doi: 10.11118/actaun201563010271
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