Андреева Сабина Алексеевна
Effectiveness of Mergers and Acquisition Deals in Energy Sector
Стратегическое управление финансами фирмы
This research paper analyzes effectiveness of M&A in energy sector in Norway, UK, Russia during the 2000-2016 period. The results of the research confirmed that the cost and effectiveness of transactions are influenced not only by the characteristics of the company-buyer ,but also the general state of the market and industries. In this regard, transactions in the energy sector should be considered not only at the level of indicators of the company-buyer and the company's goals but also at the level Industry and the market. We found that Mergers and acquisitions by companies in the energy sector in Norway, UK and Russia, has negative CAR, however cross-border transactions brings the positive CAR than the internal deals. It was confirmed that the general condition of the financial market, namely the currency and stock markets, influences their effectiveness. We applied event study methodology to analyse effectiveness of the M&A deals in energy sector, also was applied GARCH model for calculation volatility of oil and gas prices and Granger Causality test to determine the cause and effect. We performed as well linear regression to test our hypotheisis.