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Before and after acquisition in Hungary: focus on working capital management

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  • László Zoltán Kucséber

    (Magyar Nemzeti Bank)

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.

Suggested Citation

  • László Zoltán Kucséber, 2016. "Before and after acquisition in Hungary: focus on working capital management," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 15(1), pages 70-90.
    • Handle: RePEc:mnb:finrev:v:15:y:2016:i:1:p:70-90
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    References listed on IDEAS

    as
    1. Kwoka, John & Pollitt, Michael, 2010. "Do mergers improve efficiency? Evidence from restructuring the US electric power sector," International Journal of Industrial Organization, Elsevier, vol. 28(6), pages 645-656, November.
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    More about this item

    Keywords

    mergers; acquisitions; working capital management;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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