Český finanční a účetní časopis 2025(2):52-73 | DOI: 10.18267/j.cfuc.612

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

Petr Valouch1, Maria Králová2,3, Patrik Buci1
1 Masaryk University, Faculty of Economics and Administration, Lipová 41a, 602 00 Brno, Czech Republic
2 Ambis University, Department of Economics, Economy and Public Administration, Lindnerova 575/1, 180 00 Prague, Czech Republic
3 Brno University of Technology, Faculty of Business and Management, Kolejní 2906/4, 612 00 Brno, Czech Republic

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.

Keywords: Effect; Mergers; Latent growth curve model; ROA
JEL classification: G34, O16

Vloženo: 10. březen 2025; Revidováno: 28. červenec 2025; Přijato: 1. září 2025; Zveřejněno: 26. listopad 2025  Zobrazit citaci

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Valouch, P., Králová, M., & Buci, P. (2025). Is the merger worth it? Evaluating the effect of mergers of companies on their financial indicators via latent growth curve model (Pilot study). Český finanční a účetní časopis, 2025(2), 52-73. doi: 10.18267/j.cfuc.612
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