Publication detail

Assessing the Existence of Synergistic Effect in the Consolidated Accounting Entities in the Czech Republic

RAJCHLOVÁ, J. FEDOROVÁ, A. SOMERLÍKOVÁ, K GREGA, L.

Original Title

Assessing the Existence of Synergistic Effect in the Consolidated Accounting Entities in the Czech Republic

Type

journal article - other

Language

English

Original Abstract

The objective of the research was to identify possible positive synergistic effect of concerns. Because of the advantages of the existence of consolidated financial statements we focused on the Czech consolidated groups. Consolidated financial statements of 719 groups of accounting entities – concerns in the Czech Republic were studied, i.e., the statistical population consisted of 719 reporting units, which can be considered as the total population of all published consolidated financial statements. Following economic indicators were analyzed to discover the existence of positive synergistic effect: cash position ratio, return on equity, return on sales. Based on the research we concluded, that Return on equity revealed dependency between change in the value of the indicator of the parent company and consolidated unit. Values of this indicator are interesting from the investment point of view. They confirm success of capital acquisitions. Cash ratio monitoring revealed an inconsistent environment, unambiguous data correlation between the group data and the individual financial statements of the parent companies. Return on sales indicator showed that consolidated groups had reached higher values of the indicator, i.e., lower total cost ratio than parent companies. Data correlation was found on the low level, i.e., the parent companies did not influence consolidated data. Acquisition companies in the Czech Republic in period 2008-2013 generated positive financial synergy. For financial indicator of return on equity was confirmed dependence between consolidated groups and parent companies. Positive financial synergy was found out for all monitored financial indicators.

Keywords

acquisition, consolidated reporting entities, synergistic effect

Authors

RAJCHLOVÁ, J.; FEDOROVÁ, A.; SOMERLÍKOVÁ, K; GREGA, L.

Released

22. 6. 2018

Publisher

Consulting Publishing Company Business Perspectives

Location

Ukraine

ISBN

1810-4967

Periodical

Investment Management and Financial Innovations

Year of study

15

Number

2

State

Czech Republic

Pages from

305

Pages to

316

Pages count

12

URL

https://businessperspectives.org/journals/investment-management-and-financial-innovations/issue-281/assessing-the-existence-of-synergistic-effect-in-the-consolidated-accounting-entities-in-the-czech-republic

BibTex

@article{BUT147772,
  author="RAJCHLOVÁ, J. and FEDOROVÁ, A. and SOMERLÍKOVÁ, K and GREGA, L.",
  title="Assessing the Existence of Synergistic Effect in the Consolidated Accounting Entities in the Czech Republic",
  journal="Investment Management and Financial Innovations",
  year="2018",
  volume="15",
  number="2",
  pages="305--316",
  doi="10.21511/imfi.15(2).2018.27",
  issn="1810-4967",
  url="https://businessperspectives.org/journals/investment-management-and-financial-innovations/issue-281/assessing-the-existence-of-synergistic-effect-in-the-consolidated-accounting-entities-in-the-czech-republic"
}