Regulatory Reform and Corporate Control in European Energy Industries

GARCÍA, John J.; TRILLAS, Francesc

Regulatory Reform and Corporate Control in European Energy Industries

dc.contributor.author	GARCÍA, John J.
dc.contributor.author	TRILLAS, Francesc
dc.date.accessioned	2012-06-27T13:58:43Z
dc.date.available	2012-06-27T13:58:43Z
dc.date.issued	2012
dc.description.abstract	The deregulation process in the EU electricity sector triggered strategic decisions that led to industry restructuring. This paper presents preliminary evidence of the impact of this process on investors, using event studies and estimation techniques such as least squares and GARCH. Our findings suggest three stylized facts: 1) regulatory reform in Europe was certainly accompanied by a takeover wave, as predicted by Mitchell and Mulherin (1996); 2) mergers and acquisitions had a positive impact on the stock price of target firms, and a much lower and sometimes even a negative impact for the bidding firms; 3) the effect of takeover announcements on the returns of competitors of the merging firms depends on the degree of market power. In countries with high market power (like Spain) competitors significantly increase share returns upon takeover announcements, whereas in countries with lower market power (like England and Wales) returns do not change significantly.	en
dc.format.mimetype	application/pdf
dc.identifier.issn	1028-3625
dc.identifier.uri	https://hdl.handle.net/1814/22563
dc.language.iso	en	en
dc.relation.ispartofseries	EUI RSCAS	en
dc.relation.ispartofseries	2012/30	en
dc.relation.ispartofseries	Loyola de Palacio Programme on Energy Policy	en
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	Companies	en
dc.subject	Electricity supply industry deregulation	en
dc.subject	Oligopoly	en
dc.subject	Stock Market	en
dc.title	Regulatory Reform and Corporate Control in European Energy Industries	en
dc.type	Working Paper	en
dspace.entity.type	Publication
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