Do Oil Industry Merger Waves Reveal Any Trends?

Authors

  • Samuel D. Barrows Toulouse Business School

Abstract

The dynamics of the stock prices of oil industry acquirer companies are studied during in-wave and out-wave years between 1998 and 2013. The research question is do oil industry merger waves reveal any trends? This quantitative study focuses on stock returns of acquirer companies over a four-year horizon for each merger transaction. Portfolios created from these transactions provide a comparison between in-wave and out-wave years. Three benchmarks are incorporated to provide various economic adjustment factors. Six cases are presented whose outcome largely follow other similar studies. The main contribution of the study is the identification of a dynamic during oil industry in-wave years which sees a substantial increase in the Brent oil market price, of at least 29% for these in-wave years. This dynamic is not identified previously in the literature.Keywords: Oil Industry Mergers, Waves, Crude Oil Price, 1998-2013JEL Classifications: G15, G34, P18

Downloads

Download data is not yet available.

Author Biography

Samuel D. Barrows, Toulouse Business School

Mr. Barrows has over thirty years of experience in the energy industry including nineteen years with Texaco.  He worked for fifteen years in the U.S then for over fifteen years internationally including in the Former Soviet Union and the European Union. He is currently a Doctorate of Business Administration Candidate at the Toulouse Business School.

Downloads

Additional Files

Published

2017-11-01

How to Cite

Barrows, S. D. (2017). Do Oil Industry Merger Waves Reveal Any Trends?. International Journal of Energy Economics and Policy, 7(5), 142–151. Retrieved from https://econjournals.net.tr/index.php/ijeep/article/view/5483

Issue

Vol. 7 No. 5 (2017)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.