Cross-border acquisitions and profitability of acquired companies in Serbian cement industry
Transition to market economy in the Republic of Serbia started with one decade of delay compared to most former socialist countries. The transition has implied liberalization of economic policies in the area of foreign direct investments, even in some industries that have been previously considered...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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University of Novi Sad - Faculty of Economics, Subotica
2022-01-01
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| Series: | Anali Ekonomskog fakulteta u Subotici |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2022/0350-21202248015M.pdf |
| _version_ | 1828086335736381440 |
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| author | Marković Dušan Savović Slađana |
| author_facet | Marković Dušan Savović Slađana |
| author_sort | Marković Dušan |
| collection | DOAJ |
| description | Transition to market economy in the Republic of Serbia started with one decade of delay compared to most former socialist countries. The transition has implied liberalization of economic policies in the area of foreign direct investments, even in some industries that have been previously considered strategic. Multinational companies have used new business opportunities and acquired some of the most important and largest domestic companies. This paper analyses the impact of cross-border acquisitions on the profitability of targets in Serbian cement industry during the period 2000-2020. Serbian cement industry includes three cement plants, all of which were acquired in the process of privatization during 2002. The study analyses changes of ROA (return on assets), ROE (return on equity) and ROS (return on sale) of targets in the short term and in the long term after the acquisitions. The research results show that profitability of all companies improved both in the short term and in the long term after acquisitions. These improvements were achieved through higher cost efficiency and more efficient business asset management. |
| first_indexed | 2024-04-11T04:54:20Z |
| format | Article |
| id | doaj.art-69c98b5530d945e1899acbd935c1af2f |
| institution | Directory Open Access Journal |
| issn | 0350-2120 2683-4162 |
| language | English |
| last_indexed | 2024-04-11T04:54:20Z |
| publishDate | 2022-01-01 |
| publisher | University of Novi Sad - Faculty of Economics, Subotica |
| record_format | Article |
| series | Anali Ekonomskog fakulteta u Subotici |
| spelling | doaj.art-69c98b5530d945e1899acbd935c1af2f2022-12-26T15:49:15ZengUniversity of Novi Sad - Faculty of Economics, SuboticaAnali Ekonomskog fakulteta u Subotici0350-21202683-41622022-01-01202248153310.5937/AnEkSub2248015M0350-21202248015MCross-border acquisitions and profitability of acquired companies in Serbian cement industryMarković Dušan0Savović Slađana1https://orcid.org/0000-0001-5819-6497University of Belgrade, Faculty of Economics, Belgrade, SerbiaUniversity of Kragujevac, Faculty of Economics, Kragujevac, SerbiaTransition to market economy in the Republic of Serbia started with one decade of delay compared to most former socialist countries. The transition has implied liberalization of economic policies in the area of foreign direct investments, even in some industries that have been previously considered strategic. Multinational companies have used new business opportunities and acquired some of the most important and largest domestic companies. This paper analyses the impact of cross-border acquisitions on the profitability of targets in Serbian cement industry during the period 2000-2020. Serbian cement industry includes three cement plants, all of which were acquired in the process of privatization during 2002. The study analyses changes of ROA (return on assets), ROE (return on equity) and ROS (return on sale) of targets in the short term and in the long term after the acquisitions. The research results show that profitability of all companies improved both in the short term and in the long term after acquisitions. These improvements were achieved through higher cost efficiency and more efficient business asset management.https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2022/0350-21202248015M.pdfcross-border acquisitionsprofitabilitycement industrytransitional economies |
| spellingShingle | Marković Dušan Savović Slađana Cross-border acquisitions and profitability of acquired companies in Serbian cement industry Anali Ekonomskog fakulteta u Subotici cross-border acquisitions profitability cement industry transitional economies |
| title | Cross-border acquisitions and profitability of acquired companies in Serbian cement industry |
| title_full | Cross-border acquisitions and profitability of acquired companies in Serbian cement industry |
| title_fullStr | Cross-border acquisitions and profitability of acquired companies in Serbian cement industry |
| title_full_unstemmed | Cross-border acquisitions and profitability of acquired companies in Serbian cement industry |
| title_short | Cross-border acquisitions and profitability of acquired companies in Serbian cement industry |
| title_sort | cross border acquisitions and profitability of acquired companies in serbian cement industry |
| topic | cross-border acquisitions profitability cement industry transitional economies |
| url | https://scindeks-clanci.ceon.rs/data/pdf/0350-2120/2022/0350-21202248015M.pdf |
| work_keys_str_mv | AT markovicdusan crossborderacquisitionsandprofitabilityofacquiredcompaniesinserbiancementindustry AT savovicslađana crossborderacquisitionsandprofitabilityofacquiredcompaniesinserbiancementindustry |