Abnormal Returns in Mergers and Acquisition Announcements: An Examination in Related to Acquiring Firms and Target Firms

43184

Companies steer for to grow through mergers and acquisitions, especially in recent years. By this method of growth strategy firms produce additional values with the help of some factors as economies of scale and synergy. In this study we examine the effects of mergers and acquisitions over stock prices of related firms in BIST (Istanbul Stock Exchange)through event studies. To this aim, we measure abnormal returns in stock prices during the announcements related to mergers and acquisitions. In the study we test the presence of abnormal returns of acquirer and target company’s stocks in the meantime of announcements related to both beginning and end of the negotiations. As a result of the research before the public announcement of the merger transaction shareholders of the target company, provided positive abnormal return. Furthermore we find that shareholders of target company gain more profits than shareholders of acquirer company.

359

Mergers , Acquisitions , BIST , Abnormal Return , Acquirer Company , Target Company

Journal Of Graduate School Of Social Sciences

376

Journal Of Graduate School Of Social Sciences