The Asymmetric Response of Mergers and Acquisitions in the North American Oil and Gas Industry to Oil Price Changes

Jungseok Park and Jungho Baek
Additional contact information
Jungseok Park: Department of Energy Resources Engineering, College of Engineering, Seoul National University, KOREA

Review of Economics & Finance, 2019, vol. 15, 23-30

Abstract: This article examines the effects that oil price changes have on oil and gas industry M&A activities in North America. To investigate this topic thoroughly, unlike early studies we take specific account of the asymmetric effects of oil price changes in our modeling procedure, using the nonlinear autogressive distributed lag (ARDL) model of Shin, Yu and Greenwood-Nimmo. The results provide strong evidence that changes in oil prices have asymmetric effects on oil and gas industry M&A activities in both the short-run and long-run. More importantly, oil and gas industry M&A activities appear to respond more to oil price decreases than to increases.

Keywords: Asymmetry; Mergers and acquisitions (M&A); Nonlinear ARDL; North America; Oil prices (search for similar items in EconPapers)
JEL-codes: C22 D22 L70 Q41 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.bapress.ca/ref/ref-article/The%20Asymme ... 0Price%20Changes.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bap:journl:190103

Ordering information: This journal article can be ordered from
17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada

Access Statistics for this article

Review of Economics & Finance is currently edited by H. Carlson

More articles in Review of Economics & Finance from Better Advances Press, Canada 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada.
Bibliographic data for series maintained by Carlson ( this e-mail address is bad, please contact ).