The financial impact of merger and acquistions on businesses in the global competition environment and a research on mergers in Istanbul Stock Exchange Market

Ill ABSTRACT THE FINANCIAL IMPACT OF MERGER AND ACQUISITIONS ON BUSINESSES ENTERPRISES IN THE GLOBAL COMPETITION ENVIRONMENT AND A RESEARCH ON MERGERS IN ISTANBUL STOCK EXCHANGE MARKET Tuğrul KANDEMİR Business Mainscience Branch The Institute of Social Sciences of Afyon Kocatepe University June 2003 Supervisor: Prof. Dr. H. Rıza AŞIKOGLU This study tries to expose the financial impact of merger and acquisitions, which are used as a competition strategy, on business enterprises. Firstly, the globalisation concept which affects and shapes business enterprises' all activities such as enterprise organisation and the style of making business is explained. Global competition, which is an economic consequence of globalisation, is also examined. It is shown that today's business enterprises use mergers and acquisitions as a method in order to acquire competition power and to be successfull in global competition. An examination of to what extent post-merger restructuring realises the goals of merging is used as a criterion of whether a merging is successful. The impact of merging on both the financial structure and equity of business enterprises is examined in a case study of mergers and acquisitions in Istanbul Stock Exchange Market (İMKB) for the 1990-2001 period. The study reveals that mergers and acquisitions have different impacts on both equity and financial structure of business enterprises. Key words: Globalisation, Global Competition, Strategy, Mergers and Acquisitions