Birleşme ve Satın Alma Gerçekleştiren Firma Yöneticilerinin Aşırı Güven Davranışlarının Firma Değeri Üzerine Etkisi

Abstract

This study aims to examine the effect of overconfidence behaviours of the managers of the companies whose stocks are traded in Borsa Istanbul on the firm value. In the study, a model was created for Tobin q (Model 1), stock market value (Model 2) and enterprise value (Model 3). As a result of the study, a negative relationship was determined between the change in firm value and the overconfidence variable. According to this result, if the managers performing mergers and acquisitions are overconfident, the incorrect decision may be made while determining the firm value. This leads to a decrease in the wealth of the shareholders. In this respect, managers' overconfidence should also be considered while performing mergers and acquisitions in firms.

The moderating effects of the industry competition level and industry diversification on the relationship between the transaction price of mergers and acquisitions and corporate value

“…These factors contribute to the final M&A transaction price being determined at a higher price than the preacquisition market value of the target firm, and the difference between this price and the fair value can be interpreted as a premium at the time of the M&A transaction (Bebenroth & Ahmed, 2023). Unfortunately, this premium ultimately negatively affects the interests of acquiring company shareholders (Can & Dizdarlar, 2022).…”

“…Specifically, they revealed that CEO hubris, or excessive self-confidence, quantitatively explains a significant portion of merger and acquisition premiums. Recent corporate performance and favorable media coverage significantly influence CEO hubris and self-confidence, which has a negative impact on the interests of acquiring company shareholders in mergers and acquisitions (Can & Dizdarlar, 2022). As a result, CEO's personal judgements may influence corporate mergers and acquisitions rather than careful methodical decision-making processes, and if the market (shareholders) is concerned about this trend, it may respond negatively to high transaction price.…”

Assessing The Impact of Capital Structure on Firm Value: A Quantitative Study of Financial Ratios and Stock Prices of Nigeria Food and Beverage Companies

“…Transitioning to the concept of firm value (FV) focuses on a firm's worth or market capitalization. It represents all assets, including tangible and intangible assets, and the value of any outstanding debt (Au et al, 2021;Can & Dizdarlarjk, 2022;Kang & Park, 2021). The worth of a company is essential to investors, shareholders, and potential acquirers, as it indicates the firm's economic status and prospects.…”