The Determinants of Mergers and Acquisitions: Evidence from Turkey

Aysa Ipek Erdogan

Abstract


This study examines the financial variables that predict the merger and acquisition targets in Turkey. Cox regression with segmented time-dependent covariates is used to determine the factors that predict target companies for mergers and acquisitions. The firms that are analyzed are among the top 500 industrial enterprises in Turkey. We find that a lower pretax profit margin is associated with an increased chance of being a merger or an acquisition target. In addition, the lower the debt ratio, the more likely the firm will be a target for a merger or an acquisition.


Full Text: PDF DOI: 10.5539/ijef.v4n4p72

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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