An Analysis of Pre and Post-Acquisition Financial Performance of Target Czech Banks: A Comparative Analysis

Long Hoang Pham

Abstract


The objective of the study is to analyze and compare the pre and post-acquisitions financial performance of four banks, namely ČSOB, Komerční banka, Česká spořitelna and Hypoteční banka through ratio analysis, with greater emphasis on ROA, RONW, EPS, DE and NPM as financial efficiency parameters. Data were collected from the published annual report and accounts of the selected banks and were subsequently analyzed applying Wilcoxon signed rank test through statistical package for social sciences (SPSS). The data was being collected for three years before and after the acquisition. The study concluded that M&A of the selected firms have resulted in no significant change in the financial performance of these firms. Our study recommended that banks should be aiming more for profit for enhanced financial performance to reap the benefit of M&A in the Czech banking sector.


Keywords


Eastern Europe, FDI

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