A NETWORK ANALYSIS OF CROSS-BORDER MERGERS AND ACQUISITIONS IN POLAND, CZECHIA, AND HUNGARY
A NETWORK ANALYSIS OF CROSS-BORDER MERGERS AND ACQUISITIONS IN POLAND, CZECHIA, AND HUNGARY

Summary/Abstract: Background: Cross-border mergers and acquisitions (CBM&As) have taken the form of a network, as there are complex business relationships between the participating entities. The concept of social network analysis (SNA) to study business connections is poorly described in the literature. There is also a lack of comprehensive structure studies on CBM&A purchases by Central and Eastern Europe (CEE) companies. Research purpose: The purpose is to evaluate the geographical and sectoral structure of the Polish, Czech, and Hungarian CBM&A network in 2010–2020. This article also aims to present a new methodological approach to studying the structure of the M&A market related to the application of SNA metrics. Methods: The study is carried out using social network analysis. Sectoral M&A data taken from the Eikon Refinitiv database are used, and several network indicators are applied, i.e., degree, prestige, and betweenness centrality, for the analysis. Conclusions: In 2010–2020, Polish, Czech, and Hungarian companies were characterized by investment activity not only in the CEE countries, but also in Western Europe, Russia, and the United States. Enterprises from the financials, industrials, consumer cyclicals, and technology sectors have played an important role in CBM&A networks. Entities operating in the energy and healthcare sectors (in Hungary) and the real estate and utilities sectors (in Czechia) have also occupied a central place in the analyzed networks. Private equity and hedge funds play a key role in cross-sectoral transactions.

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