Beginning Consolidation in the Renewable Energy Industry and Bidders’ M & A-Success

Sebastian Eisenbach, Christoph Ettenhuber, Dirk Schiereck, Paschen von Flotow

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DOI: 10.4236/ti.2011.22009                

Abstract

In this paper we examine stock price reactions to mergers and acquisitions in a particular industry, the renewable energy industry. We focus on acquirers and document positive abnormal returns on a sample of 337 completed M&A-transactions announced during 2000 to 2009. We show that acquirer size, market-to-book ratio and deals announced in the recent financial crisis negatively correlate with acquirer returns. Acquirers from outside the renewable industry tend to earn positive abnormal results

Keywords

Mergers and Acquisitions, Event Study, Bidder Performance, Renewable Energy Industry, Financial Crisis

Conflicts of Interest

The authors declare no conflicts of interest.

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