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Vztah výše prémií akvizic (Acquisition Premium) a klíčových ekonomických ukazatelů
Schmied, Richard
This bachelor thesis examines whether investors are willing to pay a higher price (acquisition premium) for the companies they buy in times of economic growth. Using a correlation analysis, performed on a sample of data between 2004 and 2021, the author of the thesis rejected the dependence of the above time series of acquisition premiums and the development of the economy, expressed by the time series of changes in gross domestic product. The thesis also points out the real determinants of the level of acquisition premiums, such as the size of the company or operational synergies within the company. The author further finds that in times of economic crisis (caused by COVID-19 pandemic) these time series are correlated with each other. He notes that this finding may prove to be a direction for future research in this area. Furthermore, the author mentions possible shortcomings of the paper due to the limited data set. This bachelor thesis can serve as an insight into the issue of acquisitions in the future and the author recommends further research into the above-mentioned phenomena.
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Corporate governance and M&A effectiveness
Akmatalieva, Chinara ; Gregor, Martin (advisor) ; Novák, Jiří (referee)
This master thesis analyzes the transactions of merger and acquisition for three European countries as Germany, Netherlands and Austria with developed economies and how they are affected by corporate governance in the companies. In order to address, it collects 41 deals from 426 chosen transactions from the 1st of January 2010 to 31st of December 2019. Using method of event study with data from stock market it was examined the cumulative abnormal return on the shares of the acquiring company. Based on the results of the study, the optimum number of directors on the board, the board independence ratio and the length of the CEO's tenure have a positive relation to the effectiveness of mergers and acquisitions at the current level of corporate governance. In addition, guided by this research, it is possible to improve the mechanism of corporate governance in order to increase efficiency of mergers and acquisitions in Europe. Furthermore, an empirical model with cumulative abnormal return calculation tend to explain the impact of board structure, the number of independent members and the tenure of chief executive officer on mergers and acquisitions performance. JEL Classification C8, G3, G30, G34, M20 Keywords corporate governance, mergers and acquisitions, event study, agency theory, board of...
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Empirical Analysis on Multiple Mergers of US Banks
Le Thi Hong, Minh ; Novák, Jiří (advisor) ; Serdarevič, Goran (referee)
We use logistic analysis to predict the probability of making non-programmed merger in a data sample of 45 US banks. Non-programmed merger is the merger that happens next to the subject merger but has at least three years apart from the subject merger. We apply logistic regression of the occurrence of the non-programmed merger on main characteristics of the subject merger. We first examine the effects of each of three explanatory variables, which are firstly abnormal return around the approved date, secondly hubris management hidden in the subject merger, and thirdly the value of asset acquired, on the dependent variable. We then try to find the best prediction model by controlling some variables both confounding and rescaling. Our final prediction model shows that the probability of making a next merger at least three year after the subject merger will significantly decrease if there is abnormal return realized in the subject merger. On the other hand, using event study methodology to search for the abnormal return of the acquirer's stock price around the approved date, we prove that the information of FDIC s' merger decision is not totally confidential to public and has significant impact on the stock price of the acquirer
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The impact of foreign and domestic M&A on acquirer's stock prices in Central and Eastern Europe
Lukashova, Anna ; Kočenda, Evžen (advisor) ; Novák, Jiří (referee)
The primary objective of this thesis is to investigate the value implications of the mergers and acquisitions deals initiated by the firms from the CEE region. We examine the sample of the 203 M&A announcements made by the bidder firms from the two major economies in the region-Poland and Russia-over the period 2006-2016. We apply the event study methodology to investigate the effect of the M&A announcement on the wealth of the acquirers' shareholders. The results demonstrate that on average investors of the Polish acquirers receive positive short-term wealth effect, while the investors of the Russian firms lose in short-term value. Our empirical findings provide partial support for the positive wealth effect when acquirers target the strategically important asset. Our results hold after controlling for the number of firm and transaction-specific characteristics. JEL Classification G14, G32, G34 Keywords mergers and acquisitions, event study, bidder gains, shareholder wealth effects, Central and Eastern Europe Author's e-mail lukashova.a.v@gmail.com Supervisor's e-mail kocenda@fsv.cuni.cz
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Financial legal aspects of mergers and acquisirions in private equity
Ulmanová, Kristýna ; Kohajda, Michael (advisor) ; Sejkora, Tomáš (referee)
Financial legal aspects of mergers and acquisitions in private equity Abstract This diploma thesis is focused on selected financial legal aspects of mergers and acquisitions in private equity. First, it analyzes the concept of private equity as a specific area of medium-term or long-term investments made by holding companies or investment funds in the sense of Act No. 240/2013 Coll., on Management Companies and Investment Funds. The next part deals with the term of mergers and acquisitions, a contemporary phenomenon, in the context of the Czech legal system. This part of the thesis further describes the individual steps of the standard acquisition process. This is followed by another section dedicated to derivatives. The diploma thesis first introduces the general characteristics of derivatives, followed by topics such as accounting of derivatives, introduction of embedded derivatives, characteristics of equity derivatives and then by the practical part, which deals with mechanisms in transaction documentation fulfilling the features of the embedded derivatives. Furthermore, the thesis focuses on the European regulation of derivatives, specifically the Regulation of the European Parliament and the Council (EU) No. 648/2012, on OTC derivatives, central counterparties and trade repositories and unclear issues...
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Analysis of Effects of the European Monetary Union on Merger and Acquisition Activity in Europe
Přerovský, David ; Novák, Jiří (advisor) ; Nechvátalová, Lenka (referee)
Analysis of Effects of the European Monetary Union on Merger and Acquisition Activity in Europe David Přerovský Abstract The aim of this thesis is to, firstly, analyze effects of the creation of the European Monetary Union (EMU) on cross-border merger and acquisition activity in Europe, and, secondly, to investigate whether joining the EMU after it had been established results in higher M&A activity. Our research utilizes the difference-in-differences and difference in difference in differences approaches in which we compare aggregate M&A activity in new adopters of the euro to that of a control country, whose aggregate M&A activity had followed a similar trend up until the adoption. These methods allow us to account for country-specific trends in M&A activity and the for the phenomenon of M&A waves. Our results show no evidence that creation of the EMU caused higher M&A activity among the members or higher M&A activity in general. For later joiners, no evidence of higher M&A activity as a result of adopting the euro is found either.
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Legal Aspects of Corporate Acquisitions
Korger, Matěj ; Kohajda, Michael (advisor) ; Sejkora, Tomáš (referee)
Legal Aspects of Corporate Acquisitions The aim of the diploma thesis is to provide an analysis of significant economic and legal aspects of mergers and acquisitions in the Czech Republic, as well as to point out some specifics of the Czech market and describe loan acquisition financing in terms of financial law. The theoretical findings are then applied to a specific acquisition, which is still ongoing in 2020. The theoretical part of the thesis is divided into two sections. In the first, the thesis focuses on the analysis of growth strategies of companies that can be implemented in the current conditions of the market economy. Strategies are described here and then compared with one another. This part of the thesis also contains a comparison of the concepts of mergers and acquisitions, as they are often confused in practice. Here, the thesis also lists the typologies of both mergers and acquisitions that are commonly used. The second section of the theoretical part of the thesis provides an introduction to loan acquisition financing and the so-called leveraged buyout. The thesis outlines the method of loan acquisition financing together with some findings of financial theory regarding loan as such and loan law. On the contrary, the practical part of the thesis is conceived somewhat differently,...
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The Effect of M&A on Competitors' Performance in China and the US
Wojnarová, Renáta ; Kukačka, Jiří (advisor) ; Teplý, Petr (referee)
We examine the effect of merger announcements on the stock performance of acquirers' industry rivals in the context of Chinese and US deals between 1994 and 2017. Our analysis reveals that investors of rivals are able to earn abnormal returns during days around merger announcement, meaning that markets are not fully efficient as implied by the Efficient market hypothesis. We conclude that in a reaction to the announcement, US rivals achieve generally negative abnormal returns with higher magnitude and volatility compared to Chinese rivals. Additionally, we observe that Chinese investors' perception of mergers turned out to be more conservative after the Global financial crisis. During days around the merger announcement, signs of rivals' abnormal returns also differ on whether the target is public or private in both countries. Rivals operating in industries that are substantially supported by Chinese government such as real estate, pharmaceuticals, and chemicals experience positive reaction on mergers of their competitors. Furthermore, we find that industries with increasing im- portance in Chinese developing economy such as banking, telecommunications, and cyclical consumer products show a positive reaction of rivals' returns on merger announcements while in the developed US economy, a negative...
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Private Equity funds and their performance in the post-crisis period
Koníř, Štěpán ; Krištoufek, Ladislav (advisor) ; Kučera, Adam (referee)
The work covers the topic of private equity funds performance and attempt to identify the impact of macroeconomic conditions on the entire industry. The recent central banks' actions put a question about the impact of changes in interest rates on the private equity funds performance. With the sample of 100 observations provided by Cambridge Associates, we identified the significant negative effect of prevailing low interest rates on the growth of private equity funds performance. We further attempt to answer the question, whether private equity funds operating in post-crisis years has on average higher growth rate, however, we could not provide the answer as we failed to reject the null, neutral effect hypothesis. Additionally, with a sample of 3092 observations provided by Bloomberg, we found that the effect of cheap debt has increased on average in the postcrisis period, predicting that the private equity performance can suffer once the interest rates rises enough.
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