Elif Akben Selçuk
Kadir Has Üniversitesi
Emin Köksal
Bahçeşehir Üniversitesi
Ayşe Altıok Yılmaz
Bahçeşehir Üniversitesi

Published 2016-04-17

How to Cite

Akben Selçuk, E., Köksal, E., & Altıok Yılmaz, A. (2016). THE IMPACT OF MERGER AND ACQUISITION TRANSACTIONS AT THE COMPANY AND INDUSTRY LEVEL. Business & Management Studies: An International Journal, 4(1), 48–62. https://doi.org/10.15295/bmij.v4i1.132


The objective of this study is to provide a literature review consisting of studies investigating the impact of mergers and acquisition (M&A) transactions at the micro and macro levels. The review has three different parts. In the first part, the focus is on the macro effects of M&A transactions and the impact of these transactions at the industry and market levels as well as their determinants are investigated. The second part comprises studies analyzing the effects of M&A transactions on the financial performance of the acquirer and target companies. In the third and final section, the factors affecting the financial performance changes as a result of M&A transactions are discussed.


Download data is not yet available.


  1. Akben-Selçuk, E., & Yılmaz, A. (2011). The impact of mergers and acquisitions on acquirer performance: Evidence from Turkey. Business and Economics Journal, 2, 1-8.
  2. Akben-Selçuk, E. (2015). Do mergers and acquisitions create value for Turkish target firms? An event study analysis. Procedia Economics and Finance, 30, 15-21.
  3. Andrade, G., Mitchell, M., & Stafford, E. (2001). New Evidence and perspectives on mergers. Journal of Economic Perspectives, 15(2), 103-120.
  4. Arslan, H. (2004). Bulmacanın eksik parçası: birleşme ve satın almalarda insan kaynakları. Ankara: Siyasal Kitabevi.
  5. Balkin, D. B., & Gomez-Mejia, L. R. (1990). Matching compensation and organizational strategies. Strategic Management Journal, 11, 153-169.
  6. Benzing, C. (1993). Mergers-What the “Grimm” data tell us. Review of Industrial Organization, 8, 747-753.
  7. Bernstein, D. (1984). Company image and reality a critique of corporate communications. New York, NY: Holt, Rinehart and Winston Ltd.
  8. Boyer, K. D. (1992). Mergers that harm competition. Review of Industrial Organization, 7, 191202.
  9. Brown S. J., & Warner J. B. (1985). Using daily stock returns: The case of event studies. Journal of Financial Economics, 14(1), 3-31.
  10. Buono, A. F., Bowditch J. L., & Lewis J. W. (1985). When cultures collide: The anatomy of a merger. Human Relations, 38(5), 477-500.
  11. Chang, S. (1998). Takeovers of privately held targets, methods of payment, and bidder returns. The Journal of Finance, 53(2), 773-784.
  12. Chatterjee, S., Lubatkin, M. H., Schweiger, D. M., & Weber, Y (1992). Cultural differences and shareholder value in related mergers: linking equity and human capital. Strategic Management Journal, 13(5), 319-334.
  13. Clark, K., & Ofek, E. (1994). Mergers as a means of restructuring distressed firms: an empirical investigation. Journal of Financial and Quantitative Analysis, 29, 541-566.
  14. Dickerson A. P., Gibson H. D., & Tsakalotos, E. (1997). The impact of acquisitions on company performance: Evidence from a large panel of U.K. firms. Oxford Economic Papers, 49, 344-361.
  15. Erel, I., Liao, R. C., & Weisbach, M. S. (2012). Determinants of cross-border mergers and acquisitions. The Journal of Finance, 68(3), 1045-1082.
  16. Farrell, J., & Shapiro, C. (1990). Horizontal mergers: an equilibrium analysis. American Economic Review, 80, 107-125.
  17. Fuller, K., Netter, J., & Stegemoller, M. (2002). What do returns to acquiring firms tell us? Evidence from firms that make many acquisitions. The Journal of Finance, 57(4),17631793.
  18. Galbraith, J. R. (1977). Organizational design. Reading, MA: Addison-Wesley.
  19. Ghosh, A. (2001). Does operating performance really improve following corporate acquisitions? Journal of Corporate Finance, 7, 151-178.
  20. Ghosh, A., & Jain, P. J. (2000). Financial leverage changes associated with corporate mergers. Journal of Corporate Finance, 6, 377-402.
  21. Goergen M., & Renneboog, L. (2004). Shareholder wealth effects of european domestic and cross-border takeover bids. European Financial Management Journal, 10, 9-45.
  22. Govindarajan, V., & Fisher, J. (1990). Strategy, control systems, and resource sharing: effects on business unit performance. Academy of Management Journal, 33(2), 259-285.
  23. Gugler K, Mueller D. C., Yurtoglu B. B., & Zulehner, C. (2003). The effects of mergers: an international comparison. International Journal of Industrial Organization, 21, 625653.
  24. Hansen R. G., & Lott, J. R. (1996). Externalities and corporate objectives in a world with diversified shareholders/consumers. Journal of Financial and Quantitative Analysis, 31(1), 43-68.
  25. Harford J. (1999). Corporate cash reserves and acquisitions. Journal of Finance, 54, 1969-1998.
  26. Healy P.J., Palepu, K. G., & Ruback, R. S. (1992). Does corporate performance improve after mergers? Journal of Financial Economics, 31, 135-175.
  27. Hekimoğlu, M. H., & Tanyeri, B. (2011). Türk şirket birleşmelerinin satın alınan şirketlerin hisse senedi fiyatları üzerindeki etkileri, İktisat, İşletme ve Finans, 26, 53-70.
  28. Heron R. & Lie E. (2002). Operating performance and the method of payment in takeovers, Journal of Financial and Quantitative Analysis, 37, 137-156.
  29. Hofstede, G. (1991). Cultures and organizations: software of the mind. London: McGraw-Hill.
  30. Jensen M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 76(2), 323-329.
  31. Kang J. K., Shivdasani, A., & Yamada, T. (2000). The effect of bank relations on investment decisions: an investigation of Japanese takeover bids. Journal of Finance, 55, 21972218.
  32. Kaplan N. S. (1989). The effects of management buyouts on operating performance and value. Journal of Financial Economics, 24, 217-254.
  33. Klein, B., & Murphy, K. M. (1997). Vertical integration as a self-enforcing contractual arrangements. American Economic Review, 87, 415-420.
  34. Kovacic, W. E., & Shapiro, C. (2000). Antitrust policy: A century of economic and legal thinking. Journal of Economic Perspectives, 14(1), 43-60.
  35. Kruse, T. A., Park, H. Y., Park, K., & Suzuki, K. I. (2002). The value of corporate diversification: evidence from post-merger performance in Japan. AFA 2003 Washington, DC Meetings. Available at SSRN: http://dx.doi.org/10.2139/ssrn.344560
  36. Linn S. C., & Switzer J.A. (2001). Are cash acquisitions associated with better postcombination operating performance than stock acquisitions? Journal of Banking and Finance, 6, 1113-1138.
  37. Mandacı, P. E. (2004). Şirketlerin birleşme ve satın alma duyurularının hisse senedi fiyatları üzerine etkileri. İktisat, İşletme ve Finans, 19, 118-124.
  38. Mandacı, P. E. (2005). Şirket birleşmelerinin şirketlerin finansal yapı ve performanslarına etkileri. İktisat İşletme ve Finans, 20, 60-67.
  39. Marks, M. L. (1982). Merging human resources. Mergers and Acquisitions, 17(2), 38-42.
  40. Martynova, M., & Renneboog, L. (2006). Mergers and acquisitions in Europe. Advances in corporate finance and asset pricing. Der.: L. Renneboog, Amsterdam: Elsevier, 15-76.
  41. Martynova, M., Oosting, S., & Renneboog, L. (2007). The long-term operating performance of European mergers and acquisitions. International mergers and acquisitions activity since 1990: recent research and quantitative analysis. Der.: G. N. Gregoriou ve L. Renneboog, Burlington, MA: Elsevier, 79-116.
  42. Meeks, G. (1997). Disappointing marriage: a study of the gains from mergers. Cambridge, UK: Cambridge University Press.
  43. Moeller S. B., & Schlingemann F. P. (2005). Global diversification and bidder gains: A comparison between cross-border and domestic acquisitions. Journal of Banking & Finance, 29(3), 533-564.
  44. Mueller, W. F. (1982). Conglomerates: A Nonindustry. The structure of American industry. Der.: W. Adams, New York: Macmillan, 427-474.
  45. Mueller, D. C. (1989). Mergers: Causes, effects and policies. International Journal of Industrial Organization, 7(1), 1-10.
  46. Mueller, D. C. (1997). Merger policy in the United States: A reconsideration. Review of Industrial Organization, 12, 655-685.
  47. Murat, G., & Açıkgöz, B. (2007). Yöneticilerin örgüt kültürü algılamalarına ilişkin bir analiz: zonguldak karaelmas üniversitesi örneği. ZKÜ Sosyal Bilimler Dergisi, 3(5), 1-20.
  48. Nayyar, P. R. (1992). On the measurement of corporate diversification strategy: evidence from large U.S. Service firms. Strategic Management Journal, 13(3), 219-235.
  49. Powell R. G., & Stark, A.W. (2005). Does operating performance increase post-takeover for UK takeovers? A comparison of performance measures and benchmarks. Journal of Corporate Finance, 11, 293-317.
  50. Rahman R. A. & Limmack R. J. (2004). Corporate acquisitions and the operating performance of Malaysian companies. Journal of Business Finance & Accounting, 31, 359-400.
  51. Sackmann, S. A. (1991). Uncovering culture in organizations. Journal of Applied Behavioral Science, 27(3), 295-317.
  52. Sales, A. L., & Mirvis, P. A. (1984). When cultures collide: issues of acquisitions. Managing organizational transitions. Der.: J. R. Kimberly ve R. Quinn, Boston, MA: Irwin, 107133.
  53. Salinger, M. A. (1988). Vertical mergers and market foreclosure. Quarterly Journal of Economics, 103, 345-356.
  54. Sargut, S. (2001). Kültürel farklılaşma ve yönetim. Ankara: İmge Kitabevi.
  55. Sathe, V. (1985). Culture and related corporate realities. Homewood, IL: Irwin.
  56. Schein, E. (1990). Organizational culture. American Psychologist, 45(2), 109-119.
  57. Scott, J. T. (1989). Purposive diversification as a motive for merger. International Journal of Industrial Organization, 7(1), 35-47.
  58. Sharma D. S., & Ho, J. (2002). The impact of acquisitions on operating performance: some Australian evidence. Journal of Business Finance & Accounting, 29, 155-200.
  59. Switzer, J. A. (1996). Evidence on real gains in corporate acquisitions. Journal of Economics and Business, 48, 443-460.
  60. Walter G. A., & Barney J. B. (1990). Management objectives in mergers and acquisitions. Strategic Management Journal, 11, 79-86.
  61. Weston, J. F., Mulherin, J. H., & Ahern, K. (2014). Takeovers, restructuring, and corporate governance. Upper Saddle River, NJ: Prentice Hall.
  62. Williamson, O. E. (1968). Economies as an antitrust defense: the welfare tradeoffs. American Economic Review, 58, 18-36.
  63. Yeh T. M., & Hoshino, Y. (2002). Productivity and operating performance of Japanese merging firms: Keiretsu-related and independent mergers. Japan and the World Economy, 14, 347-366.