globalchange  > 气候变化与战略
DOI: 10.1016/j.enpol.2020.111700
论文题名:
Does cheap electricity in a target's location add value to the acquirer? Evidence from China
作者: Li M.; Liu C.; Shen C.
刊名: Energy Policy
ISSN: 03014215
出版年: 2020
卷: 145
语种: 英语
中文关键词: Acquirer's value ; Electricity price ; Market investor response ; Mergers and acquisitions
英文关键词: Commerce ; Costs ; Energy resources ; Investments ; Location ; Public policy ; Comparative advantage ; Corporate investments ; Electricity prices ; Five-Factor Model ; Nonlocal ; Policy implications ; Mergers and acquisitions ; comparative advantage ; economic development ; electricity industry ; electricity supply ; energy market ; energy policy ; industrial investment ; merger ; price determination ; China
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. © 2020 Elsevier Ltd
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资源类型: 期刊论文
标识符: http://119.78.100.158/handle/2HF3EXSE/167307
Appears in Collections:气候变化与战略

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作者单位: Faculty of Economics and Management, East China Normal University, Shanghai, 200062, China; Shanghai M&A Financial Research Institute ECNU, Shanghai, 200062, China; Institute of Financial Science and Technology ECNU, Shanghai, 200062, China; School of Finance, Shanghai University of Finance and Economics, Shanghai, 200246, China

Recommended Citation:
Li M.,Liu C.,Shen C.. Does cheap electricity in a target's location add value to the acquirer? Evidence from China[J]. Energy Policy,2020-01-01,145
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