Is the merger worth it? Evaluating the effect of mergers of companies on their financial indicators via latent growth curve model (Pilot study)

Is the merger worth it? Evaluating the effect of mergers of companies on their financial indicators via latent growth curve model (Pilot study)

Článek recenzovaný mimo WoS a Scopus

Our paper represents a pilot analysis and contribution to the understanding of the successful implementation of mergers in the geographic context of Central Europe and offers a foundation for future research. The analysis is based on a robust and unique dataset of 783 companies that merged in the Czech Republic over the past decade, representing a substantial proportion of merging companies in the region during the period under review. The study utilises financial statements from the merging companies, covering the period from the decisive merger day - that is, before any effects of the merger could materialise and the five years following it. Unlike traditional studies that predominantly rely on univariate methods, this research employs a comprehensive approach to analysing longitudinal, cross-industry post-merger data via latent growth curve models. This combination of dataset size and analytical depth has not been explored in this context before in the Central European region.

Our paper represents a pilot analysis and contribution to the understanding of the successful implementation of mergers in the geographic context of Central Europe and offers a foundation for future research. The analysis is based on a robust and unique dataset of 783 companies that merged in the Czech Republic over the past decade, representing a substantial proportion of merging companies in the region during the period under review. The study utilises financial statements from the merging companies, covering the period from the decisive merger day - that is, before any effects of the merger could materialise and the five years following it. Unlike traditional studies that predominantly rely on univariate methods, this research employs a comprehensive approach to analysing longitudinal, cross-industry post-merger data via latent growth curve models. This combination of dataset size and analytical depth has not been explored in this context before in the Central European region.

Effect; mergers; latent growth curve model; ROA

Effect; mergers; latent growth curve model; ROA

VALOUCH, P.; KRÁLOVÁ, M.; BUCI, P.

26.11.2025

Český finanční a účetní časopis

2025

2

Česká republika

52

73

22

https://cfuc.vse.cz/pdfs/cfu/2025/02/03.pdf