Acquisition premiums and subsequent impairment of goodwill in 2010-2015 in oil and gas sector

Zemskova Irina
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Zemskova Irina: Financial University

Review of Business and Economics Studies, 2016, issue 2, 65-82

Abstract: Since 2014 oil price has decreased from above 100US$ to sinking below 28US$, which is the lowest price since 2003. Analysts expect M&A (mergers and acquisitions) activity in oil and gas sector to increase in 2016. That is why, two empirical researches are conducted to investigated factors influencing premiums paid and impairment of goodwill. The results showed that the increase in P/NAV and P/2P variable and taking logarithm from them lead to increase in the premium paid, while the increase in EV/BOED and in Oil price leads to decrease in the premium paid. According to the model of goodwill: goodwill on acquisition's increase impacts positively, deal value increase shows negative impact, increase of % of gas in target company also shows positive impact, oil price increase affect positively.

Keywords: РЫНОЧНАЯ КАПИТАЛИЗАЦИЯ; ПРЕМИЯ ПРИ СЛИЯНИИ; СПИСАНИЕ ГУДВИЛА; ЦЕНА СДЕЛКИ; ПРЕМИЯ ПРИ ПОГЛОЩЕНИИ; MARKET CAPITALIZATION; MERGER PREMIUMS; GOODWILL IMPAIRMENT; DEAL VALUE; ACQUISITION PREMIUMS (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:scn:031730:16894100

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