An Empirical Analysis of Financial Performance and Indicators of Acquisitions

Abstract

A b s t r a c tAcquisitions have been used as a growth strategy in both developed markets and emerging markets. Turkey, as one of the leading emerging markets in the world, has been home to huge number of acquisitions. In this empirical study, we try to shed light on the outcomes of acquisitions that have occurred in Turkey between 1990 and 2017. In addition to compare post-acquisition with pre-acquisition, we use other Turkish companies that don`t engage in acquisitions as benchmark to see the effect of acquisitions on Turkish companies. Our findings indicate that acquisitions have a positive effect on Turkish firms` financial performance. We also find that Turkish acquirers are more aggressive in terms of growth than non-acquirer companies are and have higher values on capital expenditures, research and development and staff expenses. When we compare these acquirers with their preacquisition periods, we also find an increase in these financial indicators, which indicates that acquisitions affect Turkish companies significantly.