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Motives for Combinations of Trading Companies

Author

Listed:
  • Jaroslav Sedláček

    (Department Finance, Faculty of Economics and Administrations, Masaryk University, Lipová 41a, 602 00 Brno, Czech Republic)

  • Eva Hýblová

    (Department Finance, Faculty of Economics and Administrations, Masaryk University, Lipová 41a, 602 00 Brno, Czech Republic)

  • Petr Valouch

    (Department Finance, Faculty of Economics and Administrations, Masaryk University, Lipová 41a, 602 00 Brno, Czech Republic)

Abstract

The subject of this paper is an analysis of the development of activities at the European as well as the Asian market of foreign direct investments (FDI) and mergers and acquisitions (M & A). Causes of mergers and acquisitions and their development mainly in the period after the financial and economic world crisis are examined. A partial study focused on the merger market in the Czech Republic. The analysis results show that FDI inward dominate in the Asian market in contrast to more developed European and American markets where prevail FDI outward. The motivations for the activities in M & A markets are changed in dependence on the development tendencies of the world economy, politics, continuing liberalization of investment regimes, and implementation of the internationalization strategy on a large scale. The results of our study confirmed the hypothesis, that the main motive was the attainment of microeconomic advantages of the merging entities.

Suggested Citation

  • Jaroslav Sedláček & Eva Hýblová & Petr Valouch, 2015. "Motives for Combinations of Trading Companies," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(1), pages 271-280.
    • Handle: RePEc:mup:actaun:actaun_2015063010271
    DOI: 10.11118/actaun201563010271
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    References listed on IDEAS

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    1. Bruno Cassiman & Massimo G. Colombo (ed.), 2006. "Mergers and Acquisitions," Books, Edward Elgar Publishing, number 4072.
    2. Jie Wu & Qingxian An & Liang Liang, 2011. "Mergers and acquisitions based on DEA approach," International Journal of Applied Management Science, Inderscience Enterprises Ltd, vol. 3(3), pages 227-240.
    3. Friedrich Trautwein, 1990. "Merger motives and merger prescriptions," Strategic Management Journal, Wiley Blackwell, vol. 11(4), pages 283-295, May.
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