Global S&T Development Trend Analysis Platform of Resources and Environment
DOI | 10.1016/j.enpol.2020.111700 |
Does cheap electricity in a target's location add value to the acquirer? Evidence from China | |
Minghui Li, Chong Liu, Chaohai Shen | |
2020-07-07 | |
发表期刊 | Energy Policy |
出版年 | 2020 |
英文摘要 | Domestic cross-region mergers and acquisitions (M&A) are a popular corporate investment behavior. Merger and acquisition activity can have a great impact on the value of both firms involved in the transaction; market investors will buy and sell shares of the target and acquiring firms involved in M&A activity as a way to express whether they are optimistic about the success of the transaction. By analyzing the electricity price differences between targets' and acquirers' locations in nonlocal M&A activity in China from 2010 to 2017, and applying Fama-French three-factor and five-factor models, we find that many M&A transactions use the comparative advantages of lower electricity prices in the target's location, and market investors highly value M&A transactions driven by electricity price differences. The value placed by investors on these transactions is higher still when both the acquirer and the target are high electricity-intensive firms. Our work is among the first to rigorously analyze domestic cross-region M&A activity from the perspective of differential electricity prices between the targets' and acquirers' locations. We provide policy implications on how a less developed area with rich and cheap energy resources could use comparative advantages to promote economic development and boom the power market by M&A. |
领域 | 气候变化 |
URL | 查看原文 |
引用统计 | |
文献类型 | 期刊论文 |
条目标识符 | http://119.78.100.173/C666/handle/2XK7JSWQ/282665 |
专题 | 气候变化 |
推荐引用方式 GB/T 7714 | Minghui Li, Chong Liu, Chaohai Shen. Does cheap electricity in a target's location add value to the acquirer? Evidence from China[J]. Energy Policy,2020. |
APA | Minghui Li, Chong Liu, Chaohai Shen.(2020).Does cheap electricity in a target's location add value to the acquirer? Evidence from China.Energy Policy. |
MLA | Minghui Li, Chong Liu, Chaohai Shen."Does cheap electricity in a target's location add value to the acquirer? Evidence from China".Energy Policy (2020). |
条目包含的文件 | 条目无相关文件。 |
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