MERGERS AND ACQUISITIONS ACTIVITY OF INITIAL PUBLIC OFFERING FIRMS ON BORSA ISTANBUL

Öz

This paper studies the mergers and acquisitions (M&As) activity of initial public offering (IPO) firms on Borsa Istanbul (BIST) that went public between 1990-2014. We find that among the 398 firms that went public 87 firms acquired other firms while 104 firms were targeted by other firms within the first five years after their IPOs. For firms that have been involved in an M&A activity, the aggregate deal volume corresponds to 16% of their market size for acquiring IPO firms, and 29% of their market size for targeted IPO firms. On average, while these IPO firms acquired 2.1 firms within five years, they were targeted by 1.7 firms. As a result, firms that convert to public ownership on BIST might participate as acquiring firms or as target firms in the subsequent M&A processes in the first five years after their IPO. Our findings indicate that firms go public on BIST mainly to provide an exit opportunity for their existing shareholders, and they accomplish this i) through the sale of existing shares to the general public in an IPO or ii) through the sale of existing shares to the acquiring firms in a post-IPO M&A.

Kaynakça

1. Atici, Gonca, and Guner Gursoy. 2015. “Changing Ownership in the Turkish Non-Financial Corporations Listed on Borsa Istanbul (BIST)” Corporate Ownership & Control 13: 1062–1072.
2. Bildik, Recep, and Mustafa K. Yılmaz. 2008. “The Market Performance of Initial Public Offerings in the Istanbul Stock Exchange” BDDK Bankacılık ve Finansal Piyasalar 2: 49–75.
3. Brau, James C., and Stanley E. Fawcett. 2006. “Initial public offerings: an analysis of theory and practice.” Journal of Finance 61: 399–436.
4. Brau, James C., Robert B. Couch, and Ninon K. Sutton. 2012. “The desire to acquire and IPO long-run underperformance.” Journal of Financial and Quantitative Analysis 47: 493–510.
5. Bulut, Halil İbrahim. 2008. “Investment Bank Reputation and the Post-IPO Operating Performance: The Case of the Istanbul Stock Exchange” The ISE Review Vol:10 No:39, 17–40.
6. Bulut, Halil Ibrahim, Fikret Cankaya, and Bünyamin Er. 2009. “Auditing firm reputation and the post-issue operating performance in an emerging market: evidence from Turkish IPO firms” Investment Management and Financial Innovations 6: 212–229.
7. Celikyurt, Ugur, Merih Sevilir, and Anil Shivdasani. 2010. “Going public to acquire? The acquisition motive in IPOs” Journal of Financial Economics 96: 345–363.
8. Cihangir, Mehmet, and İlkut Elif Kandil. 2009. “Türkiye’de Borsaya Yeni Kote İşletmelerin Halka İlk Arzda Uyguladıkları Düşük Fiyatlandırma Olgusunun Test Edilmesi ve Nedenleri Üzerine Bir Değerlendirme” Muhasebe ve Finansman Dergisi 44: 165–178.

9. Dağlı, Hüseyin, and Ahmet Kurtaran. 2008. “İlk Halka Arzlarda Düşük Fiyatlandırmayı Etkileyen Unsurlar: Türkiye Örneği” Muhasebe ve Finansman Dergisi 39: 58–66.
10. Durukan, M. Banu. 2002. “The Relationship Between IPO Returns and Factors Influencing IPO Performance: Case of Istanbul Stock Exchange” Managerial Finance 28: 18–38.
11. Ercan, Metin, and Serhat Çevikel. 2011. “Survey on IPO underpricing in the Istanbul Stock Exchange” İktisat İşletme ve Finans 26: 85–117.
12. Erdogan, Aysa Ipek. 2010. “The Long-Run Performance of Initial Public Offerings: The Case of Turkey” European Journal of Economics, Finance and Administrative Sciences 26: 57–64.
13. Ewing, Bradley T., and Ozkan Ozfidan. 2003. “The Performance of Initial Public Offerings in an Emerging Market: The Case of the Istanbul Stock Exchange” International Journal of Business 8(2): 150–167.
14. Hsieh, Jim, Evgeny Lyandres, and Alexei Zhdanov. 2011. “A Theory of Merger-Driven IPOs” Journal of Financial and Quantitative Analysis 46: 1367–1405.
15. Kaderli, Yusuf, and Sezgin Demir. 2008. “Düşük Fiyatlandırılmış Halka Arz Firma Kalitesinin Bir Göstergesi mi?” Muhasebe ve Finansman Dergisi 37: 107–115.
16. Karatepe, Yalçın, Elif Karaaslan, and Fazıl Gökgöz. 2002. “Türkiye’de Birincil Halka Arz Uygulamalarının Analizi” İktisat İşletme ve Finans 17: 20–31.
17. Kılıç, Saim, Ali Alp, and Önder Kaymaz. 2009. “Are Compliance Costs Arising From Capital Markets Regulations in Turkey Actually That High to Hinder IPOs?” The ISE Review Vol:11 No:41, 1–24.
18. Kıymaz, Halil. 1997. “The Long Run Performances of Turkish Industrial IPOs: 1990-1995 Experience” The ISE Review Vol:1 No:3, 43–67.
19. Kiymaz, Halil. 2000. “The initial and aftermarket performance of IPOs in an emerging market: evidence from Istanbul stock exchange” Journal of Multinational Financial Management 10: 213–227.
20. Kucukkocaoglu, Guray. 2008. “Underpricing in Turkey: A Comparison of the IPO Methods” International Research Journal of Finance and Economics 13: 162–182.
21. Kurtaran, Ahmet, and Bünyamin Er. 2008. “The post-issue operating performance of IPOs in an emerging market: evidence from Istanbul Stock Exchange” Investment Management and Financial Innovations 5: 50–62.
22. Mello, Antonio S., and John E. Parsons. 1998. “Going public and the ownership structure of the firm” Journal of Financial Economics 49: 79–109.
23. Pagano, Marco, Fabio Panetta, and Luigi Zingales. 1998. “Why Do Companies Go Public? An Empirical Analysis” Journal of Finance 53: 27–64.
24. Rydqvist, Kristian, and Kenneth Högholm. 1995. “Going public in the 1980s: Evidence from Sweden” European Financial Management 1: 287–315.
25. Saraç, Mehmet, and İbrahim Bozkurt. 2011. “KOBİ’lerin Halka Açılma Eğilimleri ve Gelişen İşletmeler Piyasası’nın KOBİ’lerin Halka Açılma İstekleri Üzerine Etkisi” Muhasebe ve Finansman Dergisi 49: 89–98.
26. Zingales, L. 1995. Insider Ownership and the Decision to Go Public. Review of Economic Studies 62: 425–448.