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)

[thumbnail of This is a RoMEO white journal] PDF (This is a RoMEO white journal)

Download (407kB)


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
Divisions: Sabancı Business School
Sabancı Business School > Accounting and Finance
Depositing User: Şerif Aziz Şimşir
Date Deposited: 09 Dec 2014 22:04
Last Modified: 02 Aug 2019 11:45

Actions (login required)

View Item
View Item