The majority of researchers agree that fossil and non-renewable resources will not be sufficient to satisfy the global energy needs in the future. A transition to natural and renewable resources is necessary to preserve the environment, due to the scarcity of traditional sources. In this context, green economy can be considered a viable alternative paradigm that preserves growth expectations while protecting the earth’s ecosystems. The first objective of this chapter is to investigate if Mergers and Acquisitions deals (M&A) could represent a suitable way to finance green economy’s growth, because public subsidies are not sufficient alone to sustain the transition. The main aim in particular is to analyse the (potential) acquirer’s abnormal returns in stock price, as a consequence of M&A transactions, based on data deriving from the most recent green M&A deals, to understand if and to what extent stock market rewards those bidders that “green” themselves with a price premium. The event study methodology will be employed to measure a special typology of “price premium”, defined by literature as “green premium” (Yoo et al., 2011).

Do Green M&A deals create value? Evidence from US and EU transactions

Petruzzella F;
2015

Abstract

The majority of researchers agree that fossil and non-renewable resources will not be sufficient to satisfy the global energy needs in the future. A transition to natural and renewable resources is necessary to preserve the environment, due to the scarcity of traditional sources. In this context, green economy can be considered a viable alternative paradigm that preserves growth expectations while protecting the earth’s ecosystems. The first objective of this chapter is to investigate if Mergers and Acquisitions deals (M&A) could represent a suitable way to finance green economy’s growth, because public subsidies are not sufficient alone to sustain the transition. The main aim in particular is to analyse the (potential) acquirer’s abnormal returns in stock price, as a consequence of M&A transactions, based on data deriving from the most recent green M&A deals, to understand if and to what extent stock market rewards those bidders that “green” themselves with a price premium. The event study methodology will be employed to measure a special typology of “price premium”, defined by literature as “green premium” (Yoo et al., 2011).
978-606-10-1512-2
M&A
Financial performance
Environment performance
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/20.500.12572/5924
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