Author information:
László Zoltán Kucséber: Széchenyi István University, PhD student. E-mail: kucsla@sze.hu
Abstract:
The European mergers and acquisitions (M&A) market saw a pronounced upswing in 2014, as attested by the 40.5 per cent increase relative to 2013. In the period between 1997 and 2014, 861 acquiring companies took part in M&A transactions subject to authorisation based on the threshold value defined by the Hungarian Competition Authority in Hungary. Were the dynamic tendencies linked to the improvement in the efficiency of working capital management? In this paper, I seek an answer to this question using the findings based on data from balance sheets and profit and loss accounts and their analysis: turnover time, financing time, average working capital, the maturity indicator, ROA and ROE and their components in the framework of the DuPont model.
Cite as (APA):
Kucséber, L. Z. (2016). Before and after acquisition in Hungary: focus on working capital management. Financial and Economic Review, 15(1), 70–90. https://hitelintezetiszemle.mnb.hu/en/4-kucseber-1
Column:
Study
Journal of Economic Literature (JEL) codes:
G34, G38
Keywords:
mergers, acquisitions, working capital management
References:
Alexandridis, G. – Fuller, K. P. – Terhaar, L. – Travlos, N. G. (2011): Deal Size, Acquisition Premia and Shareholder Gains http://citeseerx.ist.psu.edu/viewdoc/download?-doi=10.1.1.225.5116&rep=rep1&type=pdf. Downloaded: 25 January 2015.
Balogh, Cs. (2006): A határon átívelő akvizíciók és fúziók sikerességét meghatározó tényezők vizsgálata. Doktori disszertáció. Budapesti Corvinus Egyetem
Bárczy, P. – Váradi, B. – Vincze, J. (2008): Közgazdaságtan és versenyjog: Alapfogalmak és gyakorlat. Arsenicum Kiadó, Budapest
Bélyácz, I. (2007): A vállalati pénzügyek alapjai. Aula Kiadó, Budapest
Bélyácz, I. (2009): Befektetési döntések megalapozása. Aula Kiadó, Budapest
Bhattacharya, H. (2009): Working Capital Management: Strategies and Techniques. PHI Learning Pvt., New Delhi
Brealey, R.A. – Myers, S. (2003): Principles of Corporate Finance. McGraw-Hill Irwin. Boston
Brealey, R.A. – Myers, S. (2011): Modern vállalati pénzügyek. Panem Kiadó, Budapest
Bruner, R. (2010): Applied Mergers and Acquisitions. Wiley, Hoboken
Carline, N. F. – Scott, C. – Linn, B. – Yadav, P. K. (2009): Operating Performance Changes Associated with Corporate Mergers and the Role of Corporate Governance. Journal of Banking & Finance, Vol. 33, No. 10, pp. 1829–1841.
Carlton, D. W. – Perloff, J. M. (2003): Modern Piacelmélet. Panem kiadó, Budapest
Copeland, T. E. – Weston, J. F. (1992): Financial Theory and Corporate Policy. Addison-Wesley Publishing Compay, Hoboken
Fazakas, G. – Gáspárné, B. – Soós, R. (2003): Bevezetés a pénzügyi és vállalati pénzügyi számításokba. Tanszék Kft. Kiadó, Budapest
Global and Regional M&A. (2014): http://www.mergermarket.com/pdf/Mergermarket 2014 M&A Trend Re-port. Financial Advisor League Tables.pdf. Downloaded: 1 April 2015.
Hofmann, E. – Maucher, D. – Piesker, S. – Richter, P. (2011): Ways Out of the Working Capital Trap: Empowering Self-Financing Growth . Springer, Heidelberg
Howson, P. (2003): ‘Due diligence’: The Critical Stage in Mergers and Acquisitions. Gower Publishing Company, Aldershot
Jae, J. (2012): DuPont Analysis used to Dissect ROE. http://www.oldschoolvalue.com/blog/accounting/dupont-analysis-model-spreadsheet/. Downloaded: 28 May 2015.
Katits, E. (2002): Pénzügyi döntések a vállalat életciklusaiban. KJK-KERSZÖV Jogi és Üzleti Kiadó Kft., Budapest
Katits, E. – Szalka, É. (2015): A magyar TOP 100 pénzügyi elemzése 2008-2013 között, avagy a növekedési lehetőségek feltárása. Saldo Kiadó, Budapest
Köke, J. (2001): Determinants of Acquisition and Failure: Stylized Facts and Lessons for Empirical Studies. Discussion Paper No. 01-30. Zentrum für Europäische Wirtschaftsforschung, Mannheim
Kwoka, J. – Pollitt, M. (2010): Do Mergers Improve Efficiency? Evidence from Restructuring the US Eelectric Power Sector. International Journal of Industrial Organization, Vol. 28., No. 6., pp. 645–656.
Mathur, S. B. (2007): Working Capital Management And Control: Principles And Practice. New Age International, New Delhi
McLaney, E. (2009): Business Finance. Theory and Practice. Prentice Hall, Edinburgh
Moyer, R. C. – McGuigan, J. R. – Kretlow, W. J. (2003): Contemporary Financial Management. Thomson/South-Western, Mason
Reed, S. F. – Lajoux, A. R. – Nesvold, H. P. (2007): The Art of M&A: A Merger, Acquisition, Buyout Guide. McGraw-Hill, New-York
Sagner, J. (2010): Essentials of Working Capital Management. John Wiley & Sons, Hoboken
Selcuk, E. A. – Yilmaz, A. A. (2011): The Impact of Mergers and Acquisitions on Acquirer Performance: Evidence from Turkey. Business and Economics Journal, Vol.2., No.1., pp. 1–8.
Sinkovics, A. (2010): Vállalati pénzügyi tervezés. Complex Kiadó, Budapest
Snow, B. (2011): Mergers and Acquisitions for Dummies. John Wiley and Sons, Indiananapolis
Szabó, M. – Pálinkó, É. (2004): Vállalati pénzügyek. Nemzeti Tankönyvkiadó, Budapest
Tsung-ming, Y. – Hoshino, Y. (2002): Productivity and Operating Performance of Japanese Merging Firms: Keiretsu-related and Independent Mergers. Japan and the World Economy, Vol. 14., No. 3. pp. 347–366.
Wessels, D. – Koller, T. – Goedhart, M. (2010): Valuation: Measuring and Managing the value of companies. 5. ed. Wiley, Hoboken
Act LVII of 1996 on the Prohibition of Unfair and Restrictive Market Practices http://net.jogtar.hu/jr/gen/hjegy_doc.cgi?docid=99600057.TV. Downloaded: 20 January 2015.
Act CLXXVI of 2013 on the Transformation, Merger and Demerger of Certain Legal Entities http://net.jogtar.hu/jr/gen/hjegy_doc.cgi?docid=A1300176.TV. Downloaded: 20 January 2015.
Ministry of Justice – Company Information and Electronic Company Registration Service http://e-beszamolo.kim.gov.hu/ http://www.gvh.hu/data/cms1029820/Vj085_2014_m.pdf. (A GVH Vj/85-13/2014. jelű határozata.) Downloaded: 4 March 2015.