Impact of Mergers of Czech Companies on their Value Added

The aim of this paper is to assess whether mergers of companies in the Czech Republic meet the expected goals as regards an increasing efficiency of business activities, specifically in the field of the increasing value added of the merged companies. The performed analysis is based on a sample of 312 companies merging in the Czech Republic in 2001-2010. The development of the value added of the merging companies as of the merger day was compared with the situation three years after. A statistical analysis examined whether the change in the value added in consequence of the merger was significant and what direction the change took. The analysis was performed separately for all the companies included in the sample and separately for the companies divided into groups of small, medium and large companies based on the value of their total assets (balance sheet total).