Öz
Mergers and acquisitions have become one of the most important strategies for companies to expand their business with the effect of globalization as well as an increase in a competitive environment in the recent era. Companies prefer mergers and acquisitions to strengthen their position or to gain more shares in the market. This study aims to investigate the impact of the rumor dates of mergers and acquisitions on stock returns by analyzing 20 companies that were listed in the Turkish stock market and engaged in merger and acquisition activities between 2005-2017. In this study, we primarily focus on the returns of the target companies and employ event study methodology and Paired Samples t-Test analyses. As a result of the study, it was found that the effect of the acquisition and merger rumor date on the returns of some target companies was significant, while some companies reacted insignificantly to this event. Considering the Paired Sample t-Test results (-3/+3), a significant effect was found on CAAR values in the event window.