Analysis of Acquirer Stock Performance in Mergers and Acquisitions in Alberta's Oil and Gas Industry
Graduation Year
Fall 2010
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Amir Barnea
Abstract
This paper develops a framework that analyzes how mergers and acquisitions in Alberta’s oil and gas industry affect stock prices. In this experiment, a multivariate regression is applied to several industry-specific variables to determine if they have impacts on the abnormal stock returns of acquirers. The results show that abnormal returns 5 days prior to the public announcement of the transaction are, in fact, driven by several industry-specific variables. However, the returns immediately after the M & A announcements are similar to previous research done in other industries. Acquirers’ gains 2 days after the announcement are essentially unaffected by the transaction. After a 90-day period, the share performances of acquiring firms tend to beat the index by 7% on average, but this is not thoroughly explained by the variables in the regression analysis.
Recommended Citation
Zivot, Harrison A., "Analysis of Acquirer Stock Performance in Mergers and Acquisitions in Alberta's Oil and Gas Industry" (2010). CMC Senior Theses. 22.
https://scholarship.claremont.edu/cmc_theses/22
