Browsing by Author "Tanyeri B."

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Open Access
A comparison of artificial neural network and multinomial logit models in predicting mergers
(Routledge, 2013) Fescioglu-Unver, N.; Tanyeri B.
A merger proposal discloses a bidder firm's desire to purchase the control rights in a target firm. Predicting who will propose (bidder candidacy) and who will receive (target candidacy) merger bids is important to investigate why firms merge and to measure the price impact of mergers. This study investigates the performance of artificial neural networks and multinomial logit models in predicting bidder and target candidacy. We use a comprehensive data set that covers the years 1979-2004 and includes all deals with publicly listed bidders and targets. We find that both models perform similarly while predicting target and non-merger firms. The multinomial logit model performs slightly better in predicting bidder firms.
Open Access
The effect of merger anticipation on bidder and target firm announcement period returns
(Elsevier, 2011-06) Cornett, M. M.; Tanyeri B.; Tehranian, H.
This paper examines investors' anticipation of bidder and target merger candidacy and if investor anticipations about candidacy affect the distribution of value between bidder and target firm shareholders. We find that bidder firms can be predicted more accurately than target firms. To investigate how merger announcement period returns are distributed among bidder and target shareholders, we control for different degrees of predictability in bidder and target selection and find that the difference between bidder and target firm three-day cumulative abnormal returns around a merger announcement decreases significantly. Thus, the evidence supports the hypothesis that the asymmetry in investor anticipations about merger candidacy causes disparity in bidder and target firm announcement period abnormal returns.
Open Access
Financial transparency and sources of hidden capital in Turkish banks
(Springer New York, 2009) Tanyeri B.
This paper investigates how changes in regulatory and economic environments affect the transparency of banks' financial-statements. Reregulation and a volatile economy make Turkish banks the ideal sample. I disaggregate sources of both hidden and booked capital in Turkish banks traded on the Istanbul Stock Exchange between 1988 and 2006. Hidden capital account for the difference between the accounting and opportunity-cost measures of a firm's net worth. Increases in hidden capital in crisis periods indicate a greater reliance on government-contributed safety-net capital. The increase in hidden capital is more pronounced for large banks. Too-Big-To-Fail policies may explain why large banks are the beneficiaries of government-contributed capital.
Open Access
Global Merger and Acquisition (M&A) activity: 1992-2011
(Elsevier Ltd, 2016) Yılmaz, I. S.; Tanyeri B.
In our global sample of 263,461 deals in 47 countries, 3-day target cumulative abnormal returns (CARs) average 6.9% and bidder CARs average 1.4%. When we impose the common filters used in the literature which restrict the sample to completed acquisitions of public firms, target CARs increase from 6.9% to 13%. Our findings indicate that M&A activity (particularly in deals where control rights are sold) generates value. We also find that the magnitudes of bidder and target CARs in developed countries are higher than those in emerging-market countries.
Open Access
Inventory performance with pooling: evidence from mergers and acquisitions
(Elsevier, 2015) Çömez-Dolgan, N.; Tanyeri B.
Theoretical studies show that compared to decentralized inventory management, (i) pooling inventories for different demand sources decreases the optimal safety stock, which in turn decreases inventory costs and (ii) the decrease in stock is related to the correlation between the different demand sources and variabilities of demands. Mergers and acquisitions (M&A) provide a business context to investigate the effects of correlation and variability of the merging firms' demands on potential improvements in inventory performance through inventory pooling. While merging firms may not fully centralize their inventory decisions, the coordination of inventory and supply chain decisions may result in synergies. Using firm-level data for 270 same-industry mergers carried out in U.S. between 1981 and 2009, we find that the inventory turnover of bidder and target firms improves (relative to firms in their industry) following the successful completion of mergers. The improvement in turnover is especially pronounced in deals where the demand of bidder and target firms are negatively correlated prior to the merger. Our results provide novel empirical support for the predictions of theoretical models on inventory economies in M&A.
Open Access
Once burned, twice shy: money market fund responses to a systemic liquidity shock
(Cambridge University Press, 2015) Strahan, P. E.; Tanyeri B.
After Lehman's collapse in 2008, investors ran from risky money market funds. In 27 funds, outflows overwhelmed cash inflows, thus forcing asset sales. These funds sold their safest and most liquid holdings. Funds were thus left with riskier and longer maturity assets. Over the subsequent quarter, however, the hard-hit funds reduced risk more than other funds. In contrast, money funds hit by idiosyncratic liquidity shocks before Lehman did not alter portfolio risk. The result suggests that moral hazard concerns with the Treasury Guarantee of investor claims did not increase risk taking. Funds that benefited most from the government bailout reduced risk.
Open Access
Türk şirket birleşmelerinin satın alınan şirketlerin hisse senedi fiyatları üzerindeki etkileri
(Bilgesel Yayincilik San. ve Tic. Ltd., 2011) Hekimoğlu, M. H.; Tanyeri B.
Bu çalışmada, Türkiye’de 1991 ile 2009 yılları arasında halka duyurulan birleşmelerin ve kısmi satışların hedef şirket hisse senedi fiyatları üzerindeki etkileri incelenmiştir. Hedef şirket hissedarları, halka duyuru gününü merkez alan üç günlük zaman aralığında, birleşmelerde yüzde 8,56, kısmi satışlarda ise yüzde 2,25 oranında kümülatif anormal getiri elde etmiştir. Bulgular, alıcı şirketlerin, hedef şirket yönetimini ele geçirdikleri birleşmelerde, kısmi satışlara göre daha yüksek bir bedel ödediğini göstermektedir. Hedef şirket hissedarlarının ABD’de (yüzde 20 civarı) ve Avrupa’da (yüzde 10 civarı) görülen kümülatif anormal getirilere kıyasla, Türkiye’de daha düşük getiri elde etmesi iki etkenle açıklanabilir: 1) duyuru tarihini belirlemedeki zorluklar ve birleşme ile ilgili sızan bilgiler; 2) Türkiye’deki yasal düzenlemelerdeki ve rekabet ortamındaki farklılıklar.