Do mergers and acquisitions create shareholder value in the infrastructure and utility sectors? Analysis of market perceptions
Emanuele Teti and
Utilities Policy, 2020, vol. 64, issue C
Through an analysis over a 20-year period from 1997 to 2017 for a global sample of listed infrastructure companies, 80% of which were utilities, this study shows that target companies' Cumulative Average Abnormal Returns (CAARs) are positive and statistically significant, while acquirer firms earn positive but not statistically significant CAARs. The results obtained must be viewed in light of the restructuring that has distinguished the last 20 years by strongly modifying the infrastructure environment and facilitating the diffusion of mergers and acquisitions (M&A). Our results support the financial reasonableness and potential efficiency of M&A transactions in the infrastructure and public utility sectors, with specific reference to target companies.
Keywords: Infrastructure; Utilities; Mergers and acquisitions (M&As); CAARs; Restructuring (search for similar items in EconPapers)
References: View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:64:y:2020:i:c:s0957178720300485
Access Statistics for this article
Utilities Policy is currently edited by D. Smith
More articles in Utilities Policy from Elsevier
Bibliographic data for series maintained by Haili He ().