Title: What are the outcomes of emerging markets mergers and acquisitions? Evidence from Turkey

Authors: Omer Faruk Genc; Burak Kalkan

Addresses: Assistant Professor of International Business, Williamson College of Business Administration, Youngstown State University, Youngstown, OH 44555, USA ' Department of Business Administration, School of Managerial Sciences, Abdullah Gül University, Kayseri, 38080, Turkey

Abstract: Emerging markets have become home to an increasing amount of acquisition activity. However, we do not know much about how domestic and international acquisitions differ in terms of their outcomes. The objective of this study is to compare these acquisitions in the context of an emerging country. To do so, we analysed all acquisitions that occurred in Turkey between 1989 and 2017. We found that domestic acquirers significantly outperformed foreign acquirers of Turkish companies. Our analysis of financial indicators suggests that foreign acquirers are larger in size, have greater leverage and intangibles, and engage in bigger deals. However, growth in leverage, capital expenditures, and administrative and staff expenses are greater in domestic acquirers. Overall, our findings suggest that domestic acquirers are affected more significantly by acquisitions compared to foreign acquirers and based on the financial outcomes of acquisitions there are several differences between these two groups of acquirers.

Keywords: acquisitions; mergers; domestic; international; Turkey.

DOI: 10.1504/JGBA.2019.099917

Journal for Global Business Advancement, 2019 Vol.12 No.1, pp.51 - 69

Received: 07 Feb 2019
Accepted: 14 Feb 2019

Published online: 28 May 2019 *

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