Aysa Ipek Erdogan

Factors affecting SME access to bank financing: an interview study with Turkish bankers

ABSTRACT This qualitative study sets out to determine from the perspective of bankers the factors that affect SME access to bank loans. Semi-structured interviews were conducted with 25 Turkish bank managers, and thematic analysis was used to analyse the interviews. The results revealed that the commitment of an SME to its credit obligations, combined with its financial data, affects its access to bank loans. Banks evaluate the adequacy of equity for the area of activity, the profitability of the firm, its debt ratio and current ratio, and the firm’s ability to generate sufficient cash flow. Other factors that affect access to bank loans include the length of the firm’s relationship with the bank, the industry in which the firm operates, the age of the firm and impressions gained from on-site visits. Firms that have a long-term relationship with the bank and older firms have better access to bank loans. Moreover, manufacturing sector SMEs have easier bank financing accessibility.

Marriott Starwood merger: what did we learn from a financial standpoint?

The purpose of this paper is to measure and observe stock market and investor reactions (benchmark adjusted cumulative abnormal returns (CARs)) to the announcement of Marriott’s acquisition of Starwood and related merger and acquisition (M&A) news and related activities over a two-year period.,Empirical models and quantifications were developed and tested through event study analysis to test the Marriot-Starwood M&A news and related activities and to observe the abnormal stock return patterns. Several data sources were employed including Factiva by Dow Jones, Wall Street Newspaper, CRSP/COMPUSTAT merged files, and ValueLine Research.,This paper provides financial insights and outcomes of pre-, during, and post-Marriot-Starwood merger. While equity returns to Starwood were mostly flat, Marriott experienced negative returns around the acquisition announcement and anytime a news article appears following the announcement. However, performance proxies showed that Marriott’s shareholders gained superior buy and hold returns following the acquisition in the long run.,Short-term event study methodology might be less than perfect in examining the stock returns to acquisitions. Therefore, future research is encouraged to test and observe Marriot-Starwood merger using longer time periods with predictive analysis to check the further usability of the results.,The study’s findings practically signal that overreaction in the short term is followed by a correction with an improvement in returns and sales performance of Marriot. In the majority of the acquisitions, integration process is not planned until after the acquisition announcement or the deal completion.,This paper contributes to the existing literature by demonstrating the financial issues, challenges, and outcomes of the biggest merger in the history of the global lodging industry.