scholarly journals Assessment of the Performance of Mergers: Revisiting Results after a Prolonged Period

2021 ◽  
Vol 92 ◽  
pp. 07047
Author(s):  
Jan Peta ◽  
Maria Reznakova
Keyword(s):  
Performance Indicators ◽  
Value Added ◽  
Labour Cost ◽  
Growth Strategy ◽  
Financial Indicators ◽  
Publicly Traded ◽  
Private Companies ◽  
Accounting Data ◽  
Publicly Traded Companies ◽  
Near Future

Research background: Mergers and acquisitions (M&As) have become a widespread tool for business growth strategy. Considering the developments after the previous financial crisis, a fresh wave of M&As is expected to appear in the near future. Investors will look for suitable businesses to consolidate their market position. Purpose of the article: The aim of this work is to assess the performance of completed mergers over a period of five years and compare the results with previous research in which we examined the success of mergers over a three-year period. Our goal was to find out if any differences in performance indicators occur and if these differences are significant. The results may offer potential indicators of merger success rate prediction. Methods: We focused our research on mergers of private companies (i.e. not publicly traded companies) in the Czech Republic. Our research sample contained 50 completed mergers. The mergers were divided into two groups – successful and unsuccessful – according to the sales and profit of the merged company. We calculated financial indicators for each group based on accounting data. We then used the Mann-Whitney U test to test the significance of the differences between the indicator values. Findings & value added: Several important performance indicators emerged. The most significant included production consumption to sales, the material cost to sales, receivables to sales, assets turnover and profitability ratios. The ratio labour cost to sales was replaced with the ratio value added to labour cost. Our research concludes that these indicators can be considered crucial.

scholarly journals The impact of the financial crisis on earnings management: Empirical evidence from Italian and Spanish listed companies

2019 ◽  
Vol 16 (2) ◽  
pp. 121-130 ◽  
Author(s):  
Francesco De Luca ◽  
Francesco Paolone
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Performance Indicators ◽  
Listed Companies ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Time Period ◽  
Security Offerings ◽  
The Impact ◽  
Giving Bad News

Our study adopts a reliable and widely acknowledged model to detect accounts manipulation in order to assess the impact of the financial crisis on Italian and Spanish listed companies’ propensity to manage their earnings. The analysis is conducted on 565 publicly traded companies on the Italian and Spanish financial markets during the time period 2005-2013. We find a lower propensity to manipulate earnings in both countries during the pre-crisis period (2005-2008) as suggested by a decrease in the number of high-risk manipulators until 2008 included. With the spread of the financial crisis, companies become more manipulators. We believe that the reason for this is to avoid giving bad news to markets, investors, and lenders after that the crisis may have impacted too negatively on firms’ performance indicators and financial equilibrium. Our empirical results provide various implications for further studies related to managements’ incentives concurrently with security offerings.

scholarly journals Recycling Technology Innovation as a Source of Competitive Advantage: The Sustainable and Circular Business Model of a Bicentennial Company

2021 ◽  
Vol 13 (14) ◽  
pp. 7723
Author(s):  
José-Antonio Corral-Marfil ◽  
Núria Arimany-Serrat ◽  
Emma L. Hitchen ◽  
Carme Viladecans-Riera
Keyword(s):  
Business Model ◽  
Environmental Sustainability ◽  
Value Added ◽  
Research Strategy ◽  
Point Of View ◽  
Financial Indicators ◽  
Accounting Data ◽  
Secondary Sources ◽  
Recycling Technology

La Farga Yourcoppersolutions is a bicentennial Catalan company that manufactures semi-finished copper products. As copper is a 100% recyclable material, much of the sector’s production comes from secondary copper, scrap, not from mined copper. In the case of La Farga, not only a good part of its output comes from recycled copper, but it is also a world leader in copper-recycling technology. The objective of the paper is to describe La Farga’s business model from the point of view of sustainability and the circular economy. What have been the causes and effects of recycling on the business model? Regarding the methodology, the work follows the research strategy of the case study. Both qualitative and quantitative data were collected from a variety of primary and secondary sources. Economic, social and environmental sustainability of the firm was assessed through financial and non-financial indicators; value-added generation and distribution were calculated from accounting data; and the circular business model was analysed via a thematic analysis: its components, innovation, enablers and barriers. Results show that the presence of barriers forces the implementation of circularity to be gradual and to combine linear and circular models to maintain competitiveness.

scholarly journals A Retrospective Look at the Sarbanes-Oxley Act of 2002- Has it accomplished its original purpose?

2015 ◽  
Vol 31 (2) ◽  
pp. 585 ◽  
Author(s):  
Anthony Basile ◽  
Sheila Handy ◽  
Felisha N. Fret
Keyword(s):  
The United States ◽  
Regulatory Agencies ◽  
United States Congress ◽  
Publicly Traded ◽  
Private Companies ◽  
Public Companies ◽  
Publicly Traded Companies ◽  
Sarbanes Oxley ◽  
Policies And Procedures ◽  
Internal Framework

As a result of notable frauds including Enron, WorldCom and Waste Management, the United States Congress enacted the Sarbanes-Oxley Act of 2002 (SOX). The Act would forever change the accounting profession. After a little more than a decade, publicly traded companies have been able to create and implement policies and procedures to ensure compliance with the Act, specifically the provisions set forth in Section 404. Since all public companies have implemented SOX compliance together with other regulations imposed by the Internal Revenue Service and other regulatory agencies into their normal reporting routines, management of these companies have realized further benefits associated with SOX compliance. Because of these reported benefits many private companies have begun to voluntarily implement SOX-like policies and procedures into their own internal framework. This paper will discuss the perceptions of the enactment and implementation of the Act, the associated benefits derived from SOX compliance and reasons why private companies have begun voluntarily adopting SOX-like policiesprocedures and strategies.

scholarly journals Public versus Private: New Insights into the Private Company Discount

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Sabrina Goetz
Keyword(s):  
Lower Risk ◽  
Firm Characteristics ◽  
Publicly Traded ◽  
Private Company ◽  
Private Companies ◽  
Public Companies ◽  
Publicly Traded Companies ◽  
Percentage Difference ◽  
Industry Membership ◽  
Public Versus Private

Abstract We examine whether private companies are valued with a discount compared to publicly traded companies. The analysis is based on a comparison of private company transactions with those of public companies. Whereas prior studies build pairs based on industry membership, we match private companies with public counterparts that are comparable in value relevant firm characteristics, i.e. profitability, risk, and growth, to calculate the percentage difference in valuation multiples. We find that private companies are valued on average with a discount on the EBITDA-multiple of 13% compared to their public counterparts. Private companies sell at lower discounts, if the acquirer firm is publicly listed. As size is associated with lower risk, we show that larger private companies sell at lower discounts.

scholarly journals Privately-Held Companies: Legislation, Regulation, and Limited Dissemination of Financial Information

2019 ◽  
Vol 47 (4) ◽  
pp. 28
Author(s):  
Zoeanna Mayhook
Keyword(s):  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Information ◽  
Publicly Traded ◽  
Private Companies ◽  
Public And Private ◽  
Publicly Traded Companies ◽  
The Public ◽  
Disclosure Requirements ◽  
Privately Held

Publicly-traded companies have reporting and disclosure requirements set by the U.S. Securities and Exchange Commission (SEC), which includes the public disclosure of financial statements and an annual 10-K report. In contrast, privately-held companies most often do not meet the SEC filing requirements, and therefore, are not required to disclose financial information. For investors and business researchers, this can provide clear challenges for researching privately-held companies. This paper first highlights a sample of the significant legislation and rules affecting disclosure requirements of public and private companies. Then, it offers other government sources for company and industry financial information. Finally, it suggests further resources to educate business owners, investors, and business researchers.

scholarly journals Statistical and Financial Analysis of Georgian Railway`s Main Performance Indicators in 2006-2019

2019 ◽  
Vol 12 (10) ◽  
pp. 64
Author(s):  
Davit Gondauri ◽  
Manana Moistsrapishvili
Keyword(s):  
Performance Indicators ◽  
Financial Analysis ◽  
Value Added ◽  
Financial Economic ◽  
Financial Indicators ◽  
Railway Industry ◽  
Soviet Space ◽  
Space Data ◽  
Post Soviet Space

Due to the geopolitical location, Georgia can become the center for Caucasus transport-logistics; partly it still performs this function. The purpose of this research paper is to study and analyze the financial-economic and statistical position of the main indicators of the Georgian Railway Holding. Based on all the above mentioned, we have set out the tasks of the research: Statistic analysis of the value added created by the Railway Industry in the Georgian economy years 2006-2019, Determination of correlation between the general indicators of JSC "Georgian Railway" and factors operating on it, Comparative analysis of the financial indicators of the Georgian railway in the post soviet space. Data was taken from the Georgian Railway Information Technology Agency. We observed the sensitivity of cargo movement in the region. The correlation between the general indicators of JSC "Georgian Railway" and its operating factors are also reflected in the study. Despite the small portion of the railway in the country's GDP, its role in the socio-economic development of the country is great. The average annual geometric growth of the EBITDA of regionals railways is decreasing. This reduction is caused by general economic shocks in region and slowing of economic growth. However, it is worth mentioning that the results of Georgian Railway compared with the other countries are only 4% reduction. This means that the reduction of shipping of oil and dry cargo by the Georgian Railways in recent times is caused by external factors.

scholarly journals Influência da estrutura de capital no desempenho econômico de empresas familiares e não familiares brasileiras

2021 ◽  
Vol 14 (1) ◽  
pp. 162-181
Author(s):  
Edgar Pamplona ◽  
Tarcísio Pedro da Silva ◽  
Wilson Toshiro Nakamura
Keyword(s):  
Order Theory ◽  
Family Businesses ◽  
Debt Ratio ◽  
Publicly Traded ◽  
Short Term ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Accounting Data ◽  
Publicly Traded Companies

Purpose – This research aims to verify the influence of the capital structure on the economic performance of the Brazilian family and non-family businesses.Design/methodology/approach – The research is characterized as descriptive, documentary, and quantitative, being the accounting data under analysis extracted from the Economatica® database. The sample is composed of 117 publicly traded companies listed in B3, being 68 family and 49 non-family with an analysis period from 2011 to 2015. To reach the objective, statistical techniques were used, with emphasis on multiple linear regression models.Findings – The results point out that the Short-term Debt Ratio (SDR) and Long-term Debt Ratio (LDR) negatively influence the performance of family businesses, while SDR and LDR have a negative and positive relationship, respectively, with the performance of the non-family business. Originality/value – In short, such results demonstrate that family businesses must follow the pecking-order theory prerogatives to maximize their performance, while managers of non-family organizations need to observe the assumptions of both theories – trade-off and pecking-order – according to the type of indebtedness (short or long term).

scholarly journals Non-executive reporting requirements for public companies

2009 ◽  
Vol 5 (2) ◽  
pp. 36-41
Author(s):  
Mark Rome
Keyword(s):  
United States ◽  
Value Added ◽  
The United States ◽  
Publicly Traded ◽  
Public Companies ◽  
Publicly Traded Companies ◽  
Executive Staff ◽  
Reporting Requirements

Non-Executive Reporting Requirements should empower non-executive staff of publicly traded companies with a structured process to communicate value-added information directly with analysts, investors and regulators on a recurring basis without fear of reprisal or reprimand. This paper analyses non-executive reporting requirements for public companies in the United States.

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