Valuation Effects of Corporate Strategic Transactions in the Cleantech Industry

30 Pages Posted: 16 Nov 2012

See all articles by Houdou Basse Mama

Houdou Basse Mama

ESCP Europe

Nicolas Koch

Mercator Research Institute on Global Commons and Climate Change (MCC); University of Hamburg

Alexander Bassen

University of Hamburg; University of Reading - ICMA Centre

Theo Bank

affiliation not provided to SSRN

Date Written: November 15, 2012

Abstract

This paper investigates capital market reactions to announcements of corporate strategic transactions in the cleantech industry. Using the event study method in a multi-country setting, we exploit a dataset of 328 hand-collected announcements of mergers and acquisitions, joint ventures and asset disposals that took place between 2001 and 2011. We provide strong evidence of significant wealth gains from cleantech deals. On average, cleantech companies earn significantly higher abnormal returns than non-cleantech companies, which attests to beneficial idiosyncrasies of the cleantech industry. These high premiums are likely driven by government interventions which are believed to be a necessary pre-condition for clean technology to develop. Alternatively, the premiums are commanded by the acquisition of cutting-edge environmental innovations and the positive credibility spillover inherent in cleantech deals.

Keywords: cleantech, renewable energy, mergers and acquisitions, event study

JEL Classification: G14, Q28, Q42

Suggested Citation

Basse Mama, Houdou and Koch, Nicolas and Bassen, Alexander and Bank, Theo, Valuation Effects of Corporate Strategic Transactions in the Cleantech Industry (November 15, 2012). Available at SSRN: https://ssrn.com/abstract=2176120 or http://dx.doi.org/10.2139/ssrn.2176120

Houdou Basse Mama (Contact Author)

ESCP Europe ( email )

Heubnerweg 8-10
Berlin, 14059
Germany

Nicolas Koch

Mercator Research Institute on Global Commons and Climate Change (MCC) ( email )

Torgauer Stra├če 12-15
Berlin, 10829
Germany

University of Hamburg ( email )

Von-Melle-Park 9
Hamburg, 20146
Germany

Alexander Bassen

University of Hamburg ( email )

Von-Melle-Park 5
20146 Hamburg
Germany

University of Reading - ICMA Centre ( email )

Whiteknights Park
P.O. Box 242
Reading RG6 6BA
United Kingdom

Theo Bank

affiliation not provided to SSRN ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
68
Abstract Views
1,532
rank
410,389
PlumX Metrics