The Impact of Foreign Investment Restrictions on the Stock Returns of Oil Sands Companies
Eugene Beaulieu () and
Matthew M. Saunders
No 2014-72, Working Papers from Department of Economics, University of Calgary
On December 7, 2012 the Government of Canada released a policy statement and revised the guidelines for investments by State-Owned Enterprises in the Canadian oil sands. This policy statement was in response to the proposed purchase of Nexen by the Chinese SOE, CNOOC. According to the new guidelines, foreign investors must convince the Minister of Industry that a particular investment is likely to be of net benefit to Canada and those investments by foreign SOEs to acquire controlling interests in a Canadian oil sands company will be found to be of net benefit on an exceptional basis only. The purpose of this paper is to examine the impact of this announced policy change on the stock returns of firms operating in the oil sands. We employ an event study analysis to examine the impact of the policy change on the oil sands share price return after the announcement. We find that the announced changes to foreign investment in the oil sands significantly reduced stock returns in that industry and had a much larger negative impact on smaller oil sands companies (the juniors).
New Economics Papers: this item is included in nep-ene
References: View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://econ.ucalgary.ca/sites/econ.ucalgary.ca.ma ... ieuSaundersApr14.pdf (application/pdf)
Journal Article: The Impact of Foreign Investment Restrictions on the Stock Returns of Oil Sands Companies (2014)
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:clg:wpaper:2014-72
Access Statistics for this paper
More papers in Working Papers from Department of Economics, University of Calgary Contact information at EDIRC.
Bibliographic data for series maintained by Department of Economics ().