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Measuring Takeover Premiums in Cross-Border Mergers and Acquisitions: Insights from Turkey

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  • Hasan Burak Arslan
  • Serif Aziz Simsir

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 percent 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.

Suggested Citation

  • Hasan Burak Arslan & Serif Aziz Simsir, 2016. "Measuring Takeover Premiums in Cross-Border Mergers and Acquisitions: Insights from Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(1), pages 188-203, January.
  • Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:188-203
    DOI: 10.1080/1540496X.2015.1011505
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    Cited by:

    1. Tinic, Murat & Sensoy, Ahmet & Demir, Muge & Nguyen, Duc Khuong, 2020. "Broker Network Connectivity and the Cross-Section of Expected Stock Returns," MPRA Paper 104719, University Library of Munich, Germany.
    2. Yılmaz, Işıl Sevilay & Tanyeri, Başak, 2016. "Global Merger and Acquisition (M&A) activity: 1992–2011," Finance Research Letters, Elsevier, vol. 17(C), pages 110-117.
    3. Aziz Simsir, Serif & Simsek, Koray D., 2022. "The market impact of private information before corporate Announcements: Evidence from Turkey," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 80(C).

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