Determinants of the Financing Structure of the Acquiring Companies in the Pre-Merger Period. Results of the Research

• Autorzy: Ilona Fałat-Kilijańska , Jana Glaserova , Piotr Luty , Milena Otavova

Warianty tytułu

Czynniki kształtujące strukturę kapitału w spółkach przejmujących w okresie poprzedzającym połączenie podmiotów gospodarczych

• Języki publikacji: EN

Abstrakty

EN

The article's main objective is to identify the factors influencing the financing structure and capital changes in the pre-merger periods in the acquiring companies. The authors examined the relations between various industries and different size companies. Based on the analyses, it can be concluded that in small companies, the explanatory variables identified based on the literature review were statistically insignificant in many periods (in fact almost all). Completely different behaviour was observed in the group of large companies, where the same set of explanatory variables was statistically significant. The result of the research on the existence of non-linear relationships between company parameters is that in the case of some variables, there is no question of a linear nature of dependence. The study analysed the five years preceding the mergers of 307 business entities. The source of the survey data was the database prepared by the company InfoCredit SA for the Accountants Association in Poland. The authors used Statistica software and inductive reasoning for the study - supported by Spearman's rank correlation analysis, linear and polynomial regression analysis, and variable scatter analysis.(original abstract)

Podstawowe cele artykułu to identyfikacja czynników determinujących kształtowanie struktury finansowania oraz określenie ich zmian w okresach przed połączeniem w spółkach dokonujących przejęć. Badając strukturę finansowania, sprawdzono również, jakie relacje zachodzą w różnych sektorach aktywności gospodarczej. Udzielono odpowiedzi na pytania, czy i w jaki sposób wielkość spółek determinuje kształtowanie struktury kapitału. Analizą objęto pięć lat poprzedzających transakcje połączenia 307 jednostek gospodarczych. Źródłem danych badania była baza danych przygotowana przez spółkę InfoCredit SA na zlecenie Stowarzyszenia Księgowych w Polsce. W pracy wykorzystano oprogramowanie Statistica. Zastosowano wnioskowanie indukcyjne wsparte analizą korelacji rang Spearmana, analizą regresji liniowej i wielomianowej oraz analizą rozrzutu zmiennych.(abstrakt oryginalny)

Słowa kluczowe

EN

Capital structure; Financing enterprises; Business activity

PL

Struktura kapitału; Finansowanie przedsiębiorstwa; Działalność gospodarcza

• Czasopismo: Nauki o Finansach / Uniwersytet Ekonomiczny we Wrocławiu
• Rocznik: 2020
• Tom: 25
• Numer: nr 4
• Strony: 16--42

Twórcy

autor

Ilona Fałat-Kilijańska

• Wroclaw University of Economics and Business, Poland,

autor

Jana Glaserova

• Mendel University in Brno, Czech Republic,

autor

Piotr Luty

• Wrocław University of Economics and Business, Poland

autor

Milena Otavova

• Mendel University in Brno, Czech Republic,

Bibliografia

• Acharya, V. V., Shin, H. S., & Yorulmaz, T. (2010). Fire-sale FDI. Retrieved from https://archive.nyu. edu/handle/2451/29541
• Afrifa, G. A., & Padachi, K. (2016). Working capital level influence on SME profitability. Journal of Small Business and Enterprise Development, 23(1), 44-63.
• Afrifa, G. A., Tauringana, V., & Tingbani, I. (2015). Working capital management and performance of listed SMEs. Journal of Small Business & Entrepreneurship, 27(6), 557-578.
• Aguiar, M., & Gopinath, G. (2005). Fire-sale foreign direct investment and liquidity crises. Review of Economics and Statistics, 87(3), 439-452.
• Ahammad, M. F., Tarba, S. Y., Liu, Y., Glaister, K.W., & Cooper, C. L. (2016). Exploring the factors influencing the negotiation process in cross-border M&A. International Business Review, 25(2), 445-457.
• Berent, T. (2013). Ogólna teoria dźwigni finansowej. Warszawa: Szkoła Główna Handlowa w Warszawie - Oficyna Wydawnicza.
• Brunnermeier, M. K., (2005). Information leakage and market efficiency. The Review of Financial Studies, 18(2), 417-457.
• Caiazza, R., & Volpe, T. (2015). M&A process: A literature review and research agenda. Business Process Management Journal, 21(1), 205-220.
• Castro, P., Fernández, M. T. T., Amor-Tapia, B., & de Miguel, A. (2016). Target leverage and speed of adjustment along the life cycle of European listed firms. BRQ Business Research Quarterly, 19(3), 188-205.
• Cornett, M. M., McNutt, J. J., Strahan, P. E., Tehranian H. (2011). Liquidity risk management and credit supply in the financial crisis. Journal of Financial Economics, 101(2), 297-312.
• De Bernardis, L., & Giustiniano, L. (2015). Evolution of multiple organisational identities after an M&A event: A case study from Europe. Journal of Organizational Change Management, 28(3), 333-355.
• Desai, M. A., Foley, C. F., & Forbes, K. J. (2007). Financial constraints and growth: Multinational and local firm responses to currency depreciations. The Review of Financial Studies, 21(6), 2857-2888.
• Feldman, R. A., & Kumar, M. S. (1995). Emerging equity markets: Growth, benefits, and policy concerns. The World Bank Research Observer, 10(2), 181-200.
• Frank, M. Z., & Goyal, V. K. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1-37.
• Friedman, Y., Carmeli, A., Tishler, A., & Shimizu, K. (2016). Untangling micro-behavioral sources of failure in mergers and acquisitions: A theoretical integration and extension. The International Journal of Human Resource Management, 27(20), 2339-2369.
• García-Teruel, J. P., & Martinez-Solano, P. (2007). Effects of working capital management on SME profitability. International Journal of Managerial Finance, 3(2), 164-177.
• Ghosh, A. (2001). Does operating performance really improve following corporate acquisitions? Journal of Corporate Finance, (7), 151-178.
• González, V. M., & González, F. (2008). Influence of bank concentration and institutions on capital structure: New international evidence. Journal of Corporate Finance, 14(4), 363-375.
• Grabiński, K. (2016), Determinanty kształtowania wyniku finansowego w teorii i praktyce europejskich spółek giełdowych. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie. Monografie, (245).
• Heron, R., & Lie, E. (2002). Operating performance and the method of payment in takeovers. Journal of Financial and Quantitative Analysis, (37), 137-156.
• Jõeveer, K. (2013). What do we know about the capital structure of small firms. Small Business Economics, 41(2), 479-501.
• Klapper, L., & Love, I. (2004). Corporate governance, investor protection, and performance in emerging markets. Journal of Corporate Finance, Amsterdã, 10(5).
• Klapper, L., Sarria-Allende, V., & Zaidi, R. (2006). A firm-level analysis of small and medium size enterprise financing in Poland. The World Bank.
• Krugman, P. (2000). Fire-sale FDI. In S. Edwards (Ed.), Capital flows and the emerging economies: Theory, evidence, and controversies. University of Chicago Press.
• Lee, J., Park, K. N., & Kim, H. (2014). The effect of change in organizational identity on knowledge creation by mobile R&D workers in M&As. Journal of Organizational Change Management, 27(1), 41-58.
• Linn, S. C., & Switzer, J. A. (2001). Are cash acquisitions associated with better postcombination operating performance than stock acquisitions? Journal of Banking and Finance, 6, 1113-1138.
• López-Iturriaga, F. J., & Rodriguez-Sanz, J. A. (2008). Capital structure and institutional setting: A decompositional and international analysis. Applied Economics, 40(14), 1851-1864.
• Makaew, T. (2010). The dynamics of international mergers and acquisitions. Retrived from https://papers. ssrn.com/sol3/papers.cfm?abstract_id=1572005
• Margaritis, D., & Psillaki, M. (2010). Capital structure, equity ownership and firm performance. Journal of Banking & Finance, 34(3), 621-632.
• Martynova, M., Oosting, S., & Renneboog, L. (2006). The long-term operating performance of European mergers and acquisitions (ECGI - Finance Working Paper No. 137/2006, TILEC Discussion Paper No. 2006-030). Retrieved from https://ssrn.com/abstract=944407
• Mataigne, V., & Vermaelen, T. (2016). Acquisition finance: Are European companies different? (NSEAD Working Paper No. 2016/43/FIN). Retrieved from https://ssrn.com/abstract=2801466
• Matias, F., & Serrasqueiro, Z. (2017). Are there reliable determinant factors of capital structure decisions? Empirical study of SMEs in different regions of Portugal. Research in International Business and Finance, (40), 19-33.
• McCann, M., & Ackrill, R. (2015). Managerial and disciplinary responses to abandoned acquisitions in bidding firms: A new perspective. Corporate Governance: An International Review, 23(5), 402-416.
• Moeller, S. B., & Schlingemann, F. P. (2004). Are cross-border acquisitions different from domestic acquisitions? Evidence on stock and operating performance for U.S. acquirers. Journal of Banking and Finance.
• Munjal, S., & Pereira, V. (2015). Opportunities and challenges for multiple-embeddedness through mergers and acquisitions in emerging economies. Journal of Organizational Change Management, 28(5), 817-831.
• PARP. (n.d.). Retrieved from https://www.parp.gov.pl/images/PARP_publications/pdf/parp_4_raport% 20o stanie sektora maych i srednich przedsieb w polsce_internet. pdf
• Porta, R. L., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and finance. Journal of Political Economy, 106(6), 1113-1155.
• Powell, R. G., & Stark A. W. (2005). Does operating performance increase post-takeover for UK takeovers? A comparison of performance measures and benchmarks. Journal of Corporate Finance, (11), 293-317.
• Reddy, K. S. (2015). The state of case study approach in mergers and acquisitions literature: A bibliometric analysis. Future Business Journal, 1(1-2), 13-34.
• Titman, S., & Wessels, R. (1988). The determinants of capital structure choice. The Journal of Finance, 43(1), 1-19.
• Vithessonthi, C. & Tongurai, J. (2015). The effect of firm size on the leverage-performance relationship during the financial crisis of 2007-2009. Journal of Multinational Financial Management, 29, 1-29.
• Weitzel, U., & McCarthy, K. J. (2011). Theory and evidence on mergers and acquisitions by small and medium enterprises. International Journal of Entrepreneurship and Innovation Management, 14(2-3), 248-275.
• Zhang, W., Wang K., Li L., Chen Y., & Wang X. (2018). The impact of firms' mergers and acquisitions on their performance in emerging economies. Technological Forecasting and Social Change, (5).
• Zhou, Q., Tan, K. J. K., Faff, R., & Zhu, Y. (2016). Deviation from target capital structure, cost of equity and speed of adjustment. Journal of Corporate Finance, 39, 99-120.

Identyfikatory

DOI

DOI: 10.15611/fins.2020.4.02