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Measuring takeover premiums in cross-border M&As: insights from Turkey

Arslan, Hasan Burak and Şimşir, Şerif Aziz (2014) Measuring takeover premiums in cross-border M&As: insights from Turkey. (Accepted/In Press)

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Abstract

We investigate whether the merger announcement dates provided in a popular Mergers and Acquisitions (M&A) database, SDC, serve as accurate event dates for estimating the wealth effects of mergers on target firms located in Turkey. We find that 74% of SDC’s merger announcement dates are preceded by merger-related events such as merger rumors, target firms’ search for potential acquirers, and early stage merger negotiation announcements. Target cumulative abnormal return (CAR) estimates around these early dates are almost twice as large as the CAR estimates around SDC’s merger announcement dates. We argue that our findings have implications for the recently flourishing cross-border M&A literature.

Item Type:Article
Uncontrolled Keywords:cross-border M&As; event study; target abnormal returns; bid premiums; merger rumors
Subjects:H Social Sciences > HG Finance > HG4001-4285 Financial management. Business finance. Corporation finance
ID Code:24963
Deposited By:Şerif Aziz Şimşir
Deposited On:09 Dec 2014 22:04
Last Modified:09 Dec 2014 22:04

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