This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Consolidation and Market Power of Energy Utilities - The case of US-American and German Utility Takeovers

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Andreas Freytag () (University of Jena, Faculty of Economics)
Dirk Schiereck () (European Business School, Endowed Chair of Banking and Finance)
Thomas W. Thomas () (Witten/Herdecke University, Dept. of Economics and Management)

Additional information is available for the following registered author(s):

Abstract

Between 1990 and 2002 a wave of takeovers was observed in the North American and European energy utilities market. We analyze the impact of these takeovers on market power, studying 70 takeovers of US-American and 69 takeovers of German energy utilities by applying event study methodology. Stock price reactions of acquiring and target firms as well as of their competitors are used as an indicator for market power. While we do not find any significant results pointing in this direction for transactions in the US, our findings clearly indicate that the potential to increase market power is indeed an important motive for takeovers within the German energy utilities market.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.wiwi.uni-jena.de/Papers/wp-sw0705.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t in its series Jenaer Schriften zur Wirtschaftswissenschaft with number 07/2005.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation: 21 Jun 2005
Date of revision:
Handle: RePEc:jen:jenasw:2005-07

Contact details of provider:
Web page: http://www.wiwi.uni-jena.de/

Order Information:
Postal: If a paper is not downloadable, please contact the author(s) or the library of University of Jena, not the archive maintainer.

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords: acquisitions energy utilities market power oligopoly regulation

Other versions of this item:

Find related papers by JEL classification:
L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies
G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Roland Helm, 2004. "Export Market Entry Strategy and Success: Conceptual Framework and Empirical Examination," Jenaer Schriften zur Wirtschaftswissenschaft 06/2004, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t.
  2. Lynne Kiesling, 2004. "The North American blackout and electricity policy: alternatives to transmission construction," Economic Affairs, Blackwell Publishing, vol. 24(1), pages 53-57, 03. [Downloadable!] (restricted)
  3. Brown, Stephen J. & Warner, Jerold B., 1985. "Using daily stock returns : The case of event studies," Journal of Financial Economics, Elsevier, vol. 14(1), pages 3-31, March. [Downloadable!] (restricted)
  4. Mulherin, J. Harold & Boone, Audra L., 2000. "Comparing acquisitions and divestitures," Journal of Corporate Finance, Elsevier, vol. 6(2), pages 117-139, July. [Downloadable!] (restricted)
  5. Mihkel M. Tombak, 2002. "Mergers to Monopoly," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 11(3), pages 513-546, 09. [Downloadable!] (restricted)
  6. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May. [Downloadable!] (restricted)
  7. Brown, Stephen J. & Warner, Jerold B., 1980. "Measuring security price performance," Journal of Financial Economics, Elsevier, vol. 8(3), pages 205-258, September. [Downloadable!] (restricted)
  8. Song, Moon H. & Walkling, Ralph A., 2000. "Abnormal returns to rivals of acquisition targets: A test of the 'acquisition probability hypothesis'," Journal of Financial Economics, Elsevier, vol. 55(2), pages 143-171, February. [Downloadable!] (restricted)
  9. Severin Borenstein & James Bushnell & Frank Wolak, 2000. "Diagnosing Market Power in California's Restructured Wholesale Electricity Market," NBER Working Papers 7868, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Stillman, Robert, 1983. "Examining antitrust policy towards horizontal mergers," Journal of Financial Economics, Elsevier, vol. 11(1-4), pages 225-240, April. [Downloadable!] (restricted)
  11. Mitchell, Mark L. & Mulherin, J. Harold, 1996. "The impact of industry shocks on takeover and restructuring activity," Journal of Financial Economics, Elsevier, vol. 41(2), pages 193-229, June. [Downloadable!] (restricted)
  12. Cantner, Uwe & Graf, Holger, 2006. "The network of innovators in Jena: An application of social network analysis," Research Policy, Elsevier, vol. 35(4), pages 463-480, May. [Downloadable!] (restricted)
    Other versions:
  13. Kim, E Han & Singal, Vijay, 1993. "Mergers and Market Power: Evidence from the Airline Industry," American Economic Review, American Economic Association, vol. 83(3), pages 549-69, June. [Downloadable!] (restricted)
  14. Eckbo, B Espen & Wier, Peggy, 1985. "Antimerger Policy under the Hart-Scott-Rodino Act: A Reexamination of the Market Power Hypothesis," Journal of Law & Economics, University of Chicago Press, vol. 28(1), pages 119-49, April.
  15. Aloke Ghosh & Chi-Wen Jevons Lee, 2000. "Abnormal Returns and Expected Managerial Performance of Target Firms," Financial Management, Financial Management Association, vol. 29(1), Spring.
  16. Eckbo, B Espen, 1985. "Mergers and the Market Concentration Doctrine: Evidence from the Capital Market," Journal of Business, University of Chicago Press, vol. 58(3), pages 325-49, July. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jens J. Krüger, 2006. "The Sources of Aggregate Productivity Growth - U.S. Manufacturing Industries, 1958-1996," Jenaer Schriften zur Wirtschaftswissenschaft 10/2006, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t. [Downloadable!]
  2. Uwe Cantner & Kristina Dreßler & Jens J. Krüger, 2005. "Knowledge Compensation in the German Automobile Industry," Jenaer Schriften zur Wirtschaftswissenschaft 11/2005, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t. [Downloadable!]
  3. Werner Jammernegg & Peter Kischka, 2005. "A Decision Rule Based on the Conditional Value at Risk," Jenaer Schriften zur Wirtschaftswissenschaft 09/2005, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t. [Downloadable!]
  4. Markus Pasche, 2005. "(Self-)Regulation of a Natural Monopoly via Complementary Goods - the Case of F/OSS Business Models," Jenaer Schriften zur Wirtschaftswissenschaft 18/2005, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t. [Downloadable!]
  5. Wolfgang Domschke & Armin Scholl, 2006. "Heuristische Verfahren," Jenaer Schriften zur Wirtschaftswissenschaft 08/2006, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t. [Downloadable!]
  6. Uwe Cantner & Jens J. Krüger, 2006. "Micro-Heterogeneity and Aggregate Productivity Development in the German Manufacturing Sector - Results from a Decomposition Exercise," Jenaer Schriften zur Wirtschaftswissenschaft 02/2006, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t. [Downloadable!]
  7. Andreas Freytag & Donato Masciandaro, 2005. "Financial Supervision Fragmentation and Central Bank Independence: The Two Sides of the Same Coin?," Jenaer Schriften zur Wirtschaftswissenschaft 14/2005, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t. [Downloadable!]
  8. Simon Renaud, 2006. "Betriebsräte und Strukturwandel," Jenaer Schriften zur Wirtschaftswissenschaft 04/2006, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t. [Downloadable!]
  9. Markus Pasche, 2005. "Das Vertrauensspiel - eine verhaltensorientierte Erklärung," Jenaer Schriften zur Wirtschaftswissenschaft 19/2005, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t. [Downloadable!]
Statistics
Access and download statistics

Did you know? Authors registered on the RePEc Author Service receive monthly emails with details about downloads and abstract views of their works.

This page was last updated on 2008-8-28.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.