Abstract
Corporate restructuring activities in the form of mergers and acquisitions (M&As) are ongoing in the U.S. ethanol-based biofuel industry. With regard to M&As, a widespread concern is about financial performance of an individual firm and stable financial performance of the overall industry. Using an event analysis method, this study explores the impact of recent M&As on stock prices and value of the firm of publicly traded ethanol-based biofuel industry between 2010 and 2012 in the United States. Results regarding the average cumulative abnormal returns of acquiring firms suggest that the market positively responded toward recent M&As in the industry. Around 4% positive growth on a 60-day event window was attributed to M&As using market-adjusted market portfolio. A significant positive 0.47% gain in cumulative returns in a 4-day event window and a 2.7% positive gain in a 10-day event window were suggested by this study.
Original language | English (US) |
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Pages (from-to) | 138-145 |
Number of pages | 8 |
Journal | Biomass and Bioenergy |
Volume | 61 |
DOIs | |
State | Published - Feb 2014 |
Externally published | Yes |
Keywords
- Acquisitions
- Bioenergy
- Biofuel
- Ethanol
- Event analysis
- G34
- Mergers
- Q20
- Q42
- Q43
ASJC Scopus subject areas
- Forestry
- Renewable Energy, Sustainability and the Environment
- Agronomy and Crop Science
- Waste Management and Disposal