Ownership Level in Cross-border M&As of Turkish MNCs: The Role of Ownership Concentration and Institutional Contexts


Kayaci A., Ataay A.

EGE ACADEMIC REVIEW, vol.21, no.4, pp.319-331, 2021 (Journal Indexed in ESCI) identifier

  • Publication Type: Article / Article
  • Volume: 21 Issue: 4
  • Publication Date: 2021
  • Doi Number: 10.21121/eab.1018108
  • Title of Journal : EGE ACADEMIC REVIEW
  • Page Numbers: pp.319-331
  • Keywords: Cross-border merger and acquisitions, Emerging multinationals, Ownership Concentration, Ownership level, Turkey, EMERGING-MARKET FIRMS, TRANSACTION COST INFLUENCES, BUSINESS GROUPS, CORPORATE GOVERNANCE, INTERNATIONAL EXPANSION, FOREIGN ENTRY, ACQUISITIONS, STRATEGY, DETERMINANTS, ECONOMIES

Abstract

This study investigates how ownership concentration effects the ownership level and institutional environment moderates this relationship in Cross-border Merger & Acquisitions of a sample of Turkish Multinational Corporations. Proposed relationships based on institutional theory and socio-emotional wealth approach have been analyzed in a sample of 71 completed Cross-border Merger & Acquisition deals of Turkish firms between 1998-2017. Tobit regression model has been operationalized to test research hypotheses. While the findings have provided support for the positive relationship between concentrated ownership of acquiring firm and ownership level of target firm in Cross-border Merger & Acquisitions, the contextual effects of formal and informal institutions could not provide evidence for moderating impacts. These findings have implied the importance of using different theoretical approaches for distinct Emerging Market contexts like Turkey and how governance issues should be considered differently for Emerging Market firms to understand their Foreign Direct Investment desisions properly.