Detail publikace

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

REŽŇÁKOVÁ, M. PĚTA, J.

Originální název

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

Typ

článek v časopise ve Scopus, Jsc

Jazyk

angličtina

Originální abstrakt

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.

Klíčová slova

mergers in mechanical engineering, effect of mergers, operating synergies, capital cash flow, value of synergies, Czech Republic.

Autoři

REŽŇÁKOVÁ, M.; PĚTA, J.

Vydáno

4. 9. 2018

Nakladatel

Centre of Sociological Research

Místo

Szczecin

ISSN

2306-3483

Periodikum

JOURNAL OF INTERNATIONAL STUDIES

Ročník

11

Číslo

3

Stát

Polská republika

Strany od

239

Strany do

254

Strany počet

16

URL

http://www.jois.eu/?459,en_the-factors-driving-the-synergy-value-in-mergers-of-mechanical-engineering-companies-in-the-czech-republic

Plný text v Digitální knihovně

http://hdl.handle.net/11012/178351

BibTex

@article{BUT149723,
  author="Mária {Režňáková} and Jan {Pěta}",
  title="The factors driving the synergy value in mergers of mechanical engineering companies in the Czech Republic",
  journal="JOURNAL OF INTERNATIONAL STUDIES",
  year="2018",
  volume="11",
  number="3",
  pages="239--254",
  doi="10.14254/2071-8330.2018/11-3/19",
  issn="2306-3483",
  url="http://www.jois.eu/?459,en_the-factors-driving-the-synergy-value-in-mergers-of-mechanical-engineering-companies-in-the-czech-republic"
}