Publication detail

Economies of scale in M&A in the manufacturing industry in the Czech Republic

PĚTA, J. REŽŇÁKOVÁ, M.

Original Title

Economies of scale in M&A in the manufacturing industry in the Czech Republic

Type

conference paper

Language

English

Original Abstract

This paper presents partial results of the research focused on the success of completed M&A transactions in the manufacturing industry in the Czech Republic. The M&A topic has been frequently debated owing to the impossibility of unambiguously determining the associated effects. One of the M&A reasons consists in achieving the economies of scale, which should be reflected in decreasing costs. Our research is based on the sample of 59 transactions taking place in 2004 – 2011. The transactions involved 102 companies. These companies were examined for seven years, i.e. three years before the merger, and three years after the merger. The obtained data on the transactions were analysed separately for the group of successful and unsuccessful transactions. The success of the transactions was assessed by the amount of the achieved sales and the net income in the three years following the transaction. The aim of our research was to determine whether the mergers resulted in achieving economies of scale and in what areas. Testing the indicators was based on the Mann-Whitney U test. The research results have shown that only part of the mergers have been successful. The performed statistical tests confirmed the assumption that in the case of successful M&A transactions, there are savings in labour costs.

Keywords

mergers and acquisitions, economies of scale, Mann-Whitney U test, manufacturing

Authors

PĚTA, J.; REŽŇÁKOVÁ, M.

Released

28. 6. 2016

Publisher

Masarykova univerzita

Location

Brno

ISBN

978-80-210-8308-0

Book

Proceedings of the 13th International Scientific Conference

Edition number

1

Pages from

564

Pages to

571

Pages count

8

URL

http://is.muni.cz/do/econ/sborniky/2016/EFS2016-Proceedings_final_September_19_final.pdf

BibTex

@inproceedings{BUT126790,
  author="Jan {Pěta} and Mária {Režňáková}",
  title="Economies of scale in M&A in the manufacturing industry in the Czech Republic",
  booktitle="Proceedings of the 13th International Scientific Conference",
  year="2016",
  number="1",
  pages="564--571",
  publisher="Masarykova univerzita",
  address="Brno",
  isbn="978-80-210-8308-0",
  url="http://is.muni.cz/do/econ/sborniky/2016/EFS2016-Proceedings_final_September_19_final.pdf"
}