TITLE:
Beginning Consolidation in the Renewable Energy Industry and Bidders’ M & A-Success
AUTHORS:
Sebastian Eisenbach, Christoph Ettenhuber, Dirk Schiereck, Paschen von Flotow
KEYWORDS:
Mergers and Acquisitions, Event Study, Bidder Performance, Renewable Energy Industry, Financial Crisis
JOURNAL NAME:
Technology and Investment,
Vol.2 No.2,
June
3,
2011
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