Comparative analysis of mergers and acquisitions in the new member states of European Union

Baran, Dušan; Saikevičius, Darius

doi:10.1016/j.intele.2015.10.002

Cited by 5 publications

(2 citation statements)

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“…In this context, the intensification of mergers and acquisitions waves stimulated by low interest rates and a relatively permissive regulatory framework during the last decade has led to widespread fears of the possible negative repercussions thereof for market competition. On the opposite side, M&As may perform the role of a useful market mechanism increasing the competitive pressure on would-be targets, allowing for recombination of resources of smaller entities (Sears & Hoetker, 2014), prompting cost optimization, and increasing the competitiveness of entire industries on an international scale (Baran & Saikevicˇius, 2015). Depending on the stage of the consolidation cycle within a particular industry (Deans et al, 2002), either of the two effects may prevail.…”

Section: Introductionmentioning

confidence: 99%

Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?

Osiichuk,

Wnuczak

2023

Sage Open

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In a quest for economies of scale, access to technologies, and, most importantly, expansion of market share, Chinese public companies have been engaged in several consecutive waves of mergers and acquisitions (M&As) involving mostly domestically domiciled non-listed targets from the same or adjacent industries. Relying on a comprehensive panel dataset of 7,998 transactions completed between 1993 and 2020 by 2,842 publicly listed acquirers domiciled in China, the paper attempts to establish whether M&A deals allow acquirers to improve their market share and, consequently, their relative market position. We use dynamic panel regression and ordered logit models to establish and quantify the link between deal characteristics and the post-deal market share of the combined entities. Our empirical findings demonstrate that corporate consolidations exercise no significant impact on the relative competitive positioning of firms. Only acquisitions by industry leaders produce a sizeable increase in the latter’s market share and lead to higher industry concentration. Most consolidations occur among outsiders exhibiting a high degree of similarity, relatively lower profitability, and stagnant market shares within the more competitive industries with higher rates of firm creation. These consolidations, often in the form of mergers, are not effective in advancing the combined entities’ competitive positioning. Despite the fact that the bulk of corporate consolidations appears unlikely to constitute a threat to competition in the medium term, careful regulatory oversight may be warranted within the currently fragmented and highly commoditized industries, which appear likely to consolidate at the fastest pace. JEL Classification: G30, G32.

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Section: Introductionmentioning

confidence: 99%

Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?

Osiichuk,

Wnuczak

2023

Sage Open

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“…Czech national regulation is a very good example of countryspecific regulation for business combinations and accounting for these transactions Skálová, 2014). Despite the European Union attempts to harmonize accounting and tax legislation across EU states, and in spite of the fact that Czech Republic allowed application of IFRS for a specific category of financial reports, the national regulation of accounting for business combinations continues to modify the presentation of assets, equity and liabilities of the companies undergoing business combinations (Pospíšil and Strojek-Filus, 2017;Vomáčková, 2007;Baran and Saikevičius, 2015). There are many aspects in which Czech national accounting regulation deviates from the IFRS regulation (Gláserová, 2016;Strouhal, et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

Business Combinations of Czech Companies: Empirical Analysis of Their Typology

Pospíšil¹,

Vomáčková²

2018

Acta Univ. Agric. Silvic. Mendelianae Brun.

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This paper is a descriptive study which analyses company transformations -a subset of M&A -which took place in the Czech Republic in 2013. Based on the statistical sample containing detail data of 115 transformations, we analysed important aspects of company transformations (M&A) such as ownership structure of the participating companies, deployment of the effective date, acquisition date, balance-sheet date, date of registration and transformation project date, utilization of available forms of company transformations, utilization of financial statements for transformation purposes and incidence of fair-value revaluation. The results of the research shows, that majority of company transformations are in fact corporate holdings reorganisations rather than business combinations as defined by IFRS 3 and it also suggests that the rules for accounting for these transactions are in fact misused for distribution of earnings (even unrealized earnings) through the corporate holdings. We have also identified cases of severe distortion of faithful representation of successor's company financial position, most often as a result of retrospective company transformations, where the effective day of the merger was put before the date of acquisition of the majority on target's equity.

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How M&A Deals Influence Corporate Performance in Developed and Emerging Capital Markets: A Review of Empirical Results in the Literature

Grigorieva

2019

Advanced Studies in Emerging Markets Finance

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Comparative analysis of mergers and acquisitions in the new member states of European Union

Cited by 5 publications

References 10 publications

Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?

Do Corporate Consolidations Affect the Competitive Positioning of Non-Financial Firms in China?

Business Combinations of Czech Companies: Empirical Analysis of Their Typology

How M&A Deals Influence Corporate Performance in Developed and Emerging Capital Markets: A Review of Empirical Results in the Literature

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