The Development of Profitability of Merged Czech Companies

The aim of this paper is to analyse the development of profitability of merged Czech companies realizing the merger in the period of years 2001 - 2010. The analysis is based on the sample of more than 300 companies realizing and completing successfully the process of merger during the above mentioned period. Regression techniques are used to reveal the most important factors standing behind the changes of profitability of merged companies. The factors under consideration are foreign ownership, the size of the company and the influence of macroeconomic development in the Czech Republic. Moreover, the relative importance of all controlled variables is evaluated as well.