The effect of mergers and acquisition company?s market value: Application on the ise

In this study, the reflections of business associations on company values are examined andanalyzed. Just before this analysis, business association terms are explained, and some topicslike forms of business associations, association decisions, the reasons that lead to businessassociations, the advantages and disadvantages of business associations, and the associationprocess are discussed. Furthermore, issues related to the definition, the scope, the importance,and the designation of company value are also handled. In the last part of the study, eventsurvey method is used while analyzing the effects of company association and takeoverannouncements on stock returns. In this study, abnormal returns of holding after purchase andcumulative returns are calculated, depending on the released-to-public information of thecompanies that are traded in ISE, and whose purchase operations are performed with SPKlicense. According to these results, it is seen that associations generally have short termeffects on the share prices, and the information regarding the market efficiency is obtained.KEY WORDS:Mergers and acquisitions, company value, event survey, cumulative average return, excessivereturn.