Work detail

Effects of the acquisition-based majority ownership: Evidence from the Czech firms

Author: Mgr. Nela Gábrišová
Year: 2018 - summer
Leaders: prof. Ing. Evžen Kočenda Ph.D., DSc.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 76
Awards and prizes:
Abstract: Abstract The thesis analyses Czech limited liability and joint stock companies, where a change of majority shareholder occurred between 2005 and 2011, from the per- spective of their performance 3 and 5 fiscal years after acquisition. The main objective of the research is to compare realised acquisitions between them- selves according to the target’s size, and to the industrial relatedness of the acquisition target and acquirer as divided to: horizontal, vertical, financial acquisitions, and acquisitions completed by natural persons. Furthermore, var- ious financial variables potentially affecting operating profitability expressed as EBITDA margin, and other performance indicators are explored. Application of OLS regression on cross-sectional data structure for the two observed post-acquisition periods, and OLS with fixed effects on two-period panel data, provide similar results leading to conclusion that optimisation of variable costs relative to revenue after acquisition has the largest positive im- pact on EBITDA margin. No evidence is found for influence of types of acqui- sitions. Contribution to the research in M&A field is brought thanks to the fo- cus on Czech acquisitions that so far have not been systematically examined, and thanks to analysis from the perspective of acquisition targets’ financial (accounting) indicators performance instead of acquirers’ stock performance. JEL Classification G34, L10, L25, M10 Keywords acquisitions, majority shareholder change, Czech M&A market Author’s e-mail Supervisor’s e-mail


Česká Spořitelna


Patria Finance