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THE FACTORS AFFECTING THE STOCKHOLDER VALUES OF MERGERS AND ACQUISITIONS: A STUDY ON BORSA ISTANBUL

Year 2018, Volume: 14 Issue: 1, 233 - 256, 01.01.2018

Ozan Gönüllü

https://doi.org/10.17130/ijmeb.2018137583

Abstract

In this study, the factors affecting the cumulative abnormal return changes before and after the announcement were examined separately for the target and the takeover companies.163 mergers and acquisitions in which at least one of the contractors of the merger between 2005 and 2015 was traded in the Borsa Istanbul was included in this study. Models describing the cumulative abnormal returns created by the announcement of the merger to the public, the characteristics of the merger and the variables specific to the company were estimated. According to the results of the analysis; it was concluded that variables such as Tobin’s Q Ratio, sector, type of merger, return on equity, leverage ratio and cash flows have an effect on companies’ cumulative abnormal returns

Keywords

Merger and Acquisitions Stockholder Value Cumulative Abnormal Return

References

  • Asquith, P., & Kim, H. E. (1982, December). The impact of merger bids on the participating firms’ security holders. The Journal of Finance,37(5), 1209-1228.
  • Aydın, N. (1990). İşletmelerin birleşmesinde finansal analiz ve bir uygulama örneği,. Ankara: TOBB Yayını.
  • Baik, K. H. (1995). Horizontal mergers of price-setting firms with sunk capacity costs. The Quarterly Review of Economics and Finance, 35(3), 245-256.
  • Brealey, R. A., Myers, S. C., & Allen, F. (2011). Principles of corporate finance (10th Edition b.). New York: McGraw-Hill.
  • Büker, S., Aşıkoğlu, R., & Güven, S. (1997). Finansal yönetim (II. b.). Eskişehir: Sözkesen Yayınevi.
  • Cortés, L. M., García, J. J., & Agudelo, D. (2015). Effects of mergers and acquisitions on shareholder wealth: Event study for latin american airlines. Latin American Business Review, 16(3), 205-226.
  • Cummins, J. D., & Weiss, M. A. (2004, Feb. 18). Consolidation in the European insurance industry: Do mergers and acquisitions create value for shareholders?, Wharton Financial Institution Center Working Paper, (04-02).
  • Çelik, O. (1999). Şirket birleşmeleri ve birleşmelerde şirket değerlemesi. Ankara: Turhan Kitabevi.
  • Diaw, A. (2014). The effect of mergers and acquisitions on shareholder wealth: The case of European banks. International Journal of Financial Management, 4(4), 1-19.
  • Dilshad, N. M. (2013). Profitability analysis of mergers and acquisitions: An event study approach. Business and Economic Research, 3(1), 89-125.
  • Dodd, P., & Ruback, R. (1977). Tender offers and stockholder returns. Journal of Financial Economics, 351-373.
  • Fan, J., & Goyal, V. (2006). On the patterns and wealth effects of vertical mergers. Journal of Business, 79(21), 877-902.
  • Fatemi, A., Fooladi, I., & Garehkoolchian, N. (2016, September). Gains from mergers and acquisitions in Japan. DJB Discuccion Paper Series (No:1603), 1-33.
  • Giannopoulos, G., Khansalar, E., & Neel, P. (2017). The impact of single and multiple mergers and acquisitions on shareholders’ wealth of UK bidder firms. International Journal of Economics and Finance, 9(3), 141-167.
  • Green, M. B. (1990). Mergers and acquisitions: Geographical and spatial perspectives. Oxford: Routledge.
  • Hatem, B. S. (2015). What determines cumulative abnormal returns? An empirical validation in the French market. International Business Research, 8(12), 89-95.
  • Hekimoğlu, M. H., & Tanyeri, B. (2011). Türk şirket birleşmelerinin satın alınan şirketlerin hisse senedi fiyatları üzerindeki etkileri , İktisat, İşletme, ve Finans, 26(308), 53-70.
  • Hiruta, S. (2012). An event study on wealth effects of mergers and acquisitions between Japanese firms. Waseda Commercial Review, (431, 689-694 2012 pp.985-990, 431, 689-694.
  • Hogarty, T. (1970). Conglomerate mergers and acquisitions: Opinion analyses. St. John’s Law Review, 44(Special Edition), 317-327.
  • İçke, B. T. (2007). Şirket birleşmeleri, hisse senedi değeri ve finans sektörü. İstanbul: Derin Yayınları.
  • Jensen, M. C. (1986). Agency cost of free cash flow, corporate finance and takeovers. The American Economic Review, 76(2), 323-329.
  • Kashiramka, S., & Rao, M. (2013). Shareholders wealth effects of mergers & acquisitions in different deal activity periods in India. European Journal of Business and Management, 5(4), 116-129.
  • Kumar, R., Gera, S., & Saha, S. (2016). Wealth creation in the largest banking mergers- an empirical analysis. Asian Economic and Financial Review, 6(4), 206-217.
  • Lang, L. H., Stultz, R. M., & Walkling, R. A. (1989). Managerial performance, Tobin’s q, and the gains from successful tender offers. Journal of Financial Economics, (24), 137-154.
  • Maloney, M., McCormick, R., & Mitchell, M. (1993). Managerial decision making and capital structure. The Journal of Business, 66(2), 189-217.
  • Martin, S. (1994). Industrial economics: Economic analysis and public policy. New Jersey: Prentice Hall.
  • Maquieria, C., Megginson, W., & Nail, J. (1998). Wealth creation versus wealth redistribution in pure stock-for-stock mergers. Journal of Financial Economics, 48, 3-33.
  • Rani, N., Yadav, S. S., & Jain, P. K. (2015). Impact of mergers and acquisitions on shareholders’ wealth in the short run: An event study approach. The Journal for Decision Makers, 40(3), 293–312.
  • Ravenscraft, D. J., & Scherer, F. (1989). The profitability of mergers. International Journal of Industrial Organization, 7(1), 101-116.
  • Roberts, A., Wallace, W., & Moles, P. (2016). Mergers and acquisitions. Retrieved March 16, 2017, from https://www.ebsglobal.net/EBS/media/EBS/PDFs/Mergers-Acquisitions- Course-Taster.pdf.
  • Sachdeva, T., Sinha, N., & Kaushik, K. (2015, July-December). Impact of merger and acquisition announcement on shareholders’ wealth an empirical study using event study methodology. Delhi Business Review, 16(2), 19-36.
  • Sarıca, S. (2012). Yatay birleşmelerin rekabet üzerindeki etkisi: Bir literatür çalışması. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 2(1), 101-117.
  • Sarıkamış, C. (2003). Şirket birleşmeleri. İstanbul: Avcıol Basım Yayın.
  • Selçuk, E. A. (2015). Do mergers and acquisitions create value for Turkish target firms? An event study analysis. Procedia Economics and Finance, 30, 15-21.
  • Servaes, H. (1991). Tobin’s q and the gains from takeovers. The Journal of Finance, LXVI(1), 409-419.
  • Sudarsanam, S. (2003). Creating value from mergers and acquisitions: The challenges. New Jersey: Prentice Hall.
  • Weston, J. F., Chung, K. S., & Hoag, S. E. (1990). Mergers, restructuring, and corporate control. New Jersey: Prentice-Hall International.
  • Williamson, O. E. (1990). Mergers, acquisitions and leveraged buyouts: An efficiency assesment. In L. A. Bebchuk (Ed.), Corporate law and economic analysis, (pp. 1-28). Cambridge University Press.

BİRLEŞME VE DEVRALMA İŞLEMLERİNİN YARATTIĞI PAYDAŞ DEĞERİ ÜZERİNDE ETKİLİ OLAN FAKTÖRLER: BORSA İSTANBUL ÜZERİNE BİR UYGULAMA

Year 2018, Volume: 14 Issue: 1, 233 - 256, 01.01.2018

Ozan Gönüllü

https://doi.org/10.17130/ijmeb.2018137583

Abstract

Bu çalışmada, duyuru öncesi ve sonrasındaki kümülatif anormal getiri değişimleri üzerinde etkili olan faktörler, hedef ve devralan şirketler için ayrı ayrı araştırılmıştır. Çalışmaya, 2005-2015 yılları arasında gerçekleştirilmiş birleşmelerin taraflarından en az birinin Borsa İstanbul’da işlem gördüğü 163 birleşme ve devralma olayı dâhil edilmiştir. İşlemin kamuya duyurulması ile yaratılan kümülatif anormal getirileri birleşmenin özellikleri ve şirkete özgü değişkenlerle açıklayan modeller tahmin edilmiştir. Yapılan analizin sonuçlarına göre; şirketlerin kümülatif anormal getirileri üzerinde; sektör, Tobin’in Q Oranı, şirket sektör, birleşme çeşidi, özsermaye karlılığı, kaldıraç oranı ve nakit akışları gibi değişkenlerin etkisi olduğu sonucuna ulaşılmıştır.

Keywords

Şirket Birleşmeleri ve Devralmalar Paydaş Değeri Kümülatif Anormal Getiri

References

  • Asquith, P., & Kim, H. E. (1982, December). The impact of merger bids on the participating firms’ security holders. The Journal of Finance,37(5), 1209-1228.
  • Aydın, N. (1990). İşletmelerin birleşmesinde finansal analiz ve bir uygulama örneği,. Ankara: TOBB Yayını.
  • Baik, K. H. (1995). Horizontal mergers of price-setting firms with sunk capacity costs. The Quarterly Review of Economics and Finance, 35(3), 245-256.
  • Brealey, R. A., Myers, S. C., & Allen, F. (2011). Principles of corporate finance (10th Edition b.). New York: McGraw-Hill.
  • Büker, S., Aşıkoğlu, R., & Güven, S. (1997). Finansal yönetim (II. b.). Eskişehir: Sözkesen Yayınevi.
  • Cortés, L. M., García, J. J., & Agudelo, D. (2015). Effects of mergers and acquisitions on shareholder wealth: Event study for latin american airlines. Latin American Business Review, 16(3), 205-226.
  • Cummins, J. D., & Weiss, M. A. (2004, Feb. 18). Consolidation in the European insurance industry: Do mergers and acquisitions create value for shareholders?, Wharton Financial Institution Center Working Paper, (04-02).
  • Çelik, O. (1999). Şirket birleşmeleri ve birleşmelerde şirket değerlemesi. Ankara: Turhan Kitabevi.
  • Diaw, A. (2014). The effect of mergers and acquisitions on shareholder wealth: The case of European banks. International Journal of Financial Management, 4(4), 1-19.
  • Dilshad, N. M. (2013). Profitability analysis of mergers and acquisitions: An event study approach. Business and Economic Research, 3(1), 89-125.
  • Dodd, P., & Ruback, R. (1977). Tender offers and stockholder returns. Journal of Financial Economics, 351-373.
  • Fan, J., & Goyal, V. (2006). On the patterns and wealth effects of vertical mergers. Journal of Business, 79(21), 877-902.
  • Fatemi, A., Fooladi, I., & Garehkoolchian, N. (2016, September). Gains from mergers and acquisitions in Japan. DJB Discuccion Paper Series (No:1603), 1-33.
  • Giannopoulos, G., Khansalar, E., & Neel, P. (2017). The impact of single and multiple mergers and acquisitions on shareholders’ wealth of UK bidder firms. International Journal of Economics and Finance, 9(3), 141-167.
  • Green, M. B. (1990). Mergers and acquisitions: Geographical and spatial perspectives. Oxford: Routledge.
  • Hatem, B. S. (2015). What determines cumulative abnormal returns? An empirical validation in the French market. International Business Research, 8(12), 89-95.
  • Hekimoğlu, M. H., & Tanyeri, B. (2011). Türk şirket birleşmelerinin satın alınan şirketlerin hisse senedi fiyatları üzerindeki etkileri , İktisat, İşletme, ve Finans, 26(308), 53-70.
  • Hiruta, S. (2012). An event study on wealth effects of mergers and acquisitions between Japanese firms. Waseda Commercial Review, (431, 689-694 2012 pp.985-990, 431, 689-694.
  • Hogarty, T. (1970). Conglomerate mergers and acquisitions: Opinion analyses. St. John’s Law Review, 44(Special Edition), 317-327.
  • İçke, B. T. (2007). Şirket birleşmeleri, hisse senedi değeri ve finans sektörü. İstanbul: Derin Yayınları.
  • Jensen, M. C. (1986). Agency cost of free cash flow, corporate finance and takeovers. The American Economic Review, 76(2), 323-329.
  • Kashiramka, S., & Rao, M. (2013). Shareholders wealth effects of mergers & acquisitions in different deal activity periods in India. European Journal of Business and Management, 5(4), 116-129.
  • Kumar, R., Gera, S., & Saha, S. (2016). Wealth creation in the largest banking mergers- an empirical analysis. Asian Economic and Financial Review, 6(4), 206-217.
  • Lang, L. H., Stultz, R. M., & Walkling, R. A. (1989). Managerial performance, Tobin’s q, and the gains from successful tender offers. Journal of Financial Economics, (24), 137-154.
  • Maloney, M., McCormick, R., & Mitchell, M. (1993). Managerial decision making and capital structure. The Journal of Business, 66(2), 189-217.
  • Martin, S. (1994). Industrial economics: Economic analysis and public policy. New Jersey: Prentice Hall.
  • Maquieria, C., Megginson, W., & Nail, J. (1998). Wealth creation versus wealth redistribution in pure stock-for-stock mergers. Journal of Financial Economics, 48, 3-33.
  • Rani, N., Yadav, S. S., & Jain, P. K. (2015). Impact of mergers and acquisitions on shareholders’ wealth in the short run: An event study approach. The Journal for Decision Makers, 40(3), 293–312.
  • Ravenscraft, D. J., & Scherer, F. (1989). The profitability of mergers. International Journal of Industrial Organization, 7(1), 101-116.
  • Roberts, A., Wallace, W., & Moles, P. (2016). Mergers and acquisitions. Retrieved March 16, 2017, from https://www.ebsglobal.net/EBS/media/EBS/PDFs/Mergers-Acquisitions- Course-Taster.pdf.
  • Sachdeva, T., Sinha, N., & Kaushik, K. (2015, July-December). Impact of merger and acquisition announcement on shareholders’ wealth an empirical study using event study methodology. Delhi Business Review, 16(2), 19-36.
  • Sarıca, S. (2012). Yatay birleşmelerin rekabet üzerindeki etkisi: Bir literatür çalışması. Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 2(1), 101-117.
  • Sarıkamış, C. (2003). Şirket birleşmeleri. İstanbul: Avcıol Basım Yayın.
  • Selçuk, E. A. (2015). Do mergers and acquisitions create value for Turkish target firms? An event study analysis. Procedia Economics and Finance, 30, 15-21.
  • Servaes, H. (1991). Tobin’s q and the gains from takeovers. The Journal of Finance, LXVI(1), 409-419.
  • Sudarsanam, S. (2003). Creating value from mergers and acquisitions: The challenges. New Jersey: Prentice Hall.
  • Weston, J. F., Chung, K. S., & Hoag, S. E. (1990). Mergers, restructuring, and corporate control. New Jersey: Prentice-Hall International.
  • Williamson, O. E. (1990). Mergers, acquisitions and leveraged buyouts: An efficiency assesment. In L. A. Bebchuk (Ed.), Corporate law and economic analysis, (pp. 1-28). Cambridge University Press.
There are 38 citations in total.

Details

Primary Language Turkish
Journal Section Research Article
Authors

Ozan Gönüllü

Publication Date January 1, 2018
Published in Issue Year 2018 Volume: 14 Issue: 1

Cite

APA Gönüllü, O. (2018). BİRLEŞME VE DEVRALMA İŞLEMLERİNİN YARATTIĞI PAYDAŞ DEĞERİ ÜZERİNDE ETKİLİ OLAN FAKTÖRLER: BORSA İSTANBUL ÜZERİNE BİR UYGULAMA. Uluslararası Yönetim İktisat Ve İşletme Dergisi, 14(1), 233-256. https://doi.org/10.17130/ijmeb.2018137583