Effects of M&A among Energy Companies using Event Study Analysis: Case of National Oil Company

doi:10.12972/ksmer.2013.50.3.339

All Issue

2013 Vol.50, Issue 3 Preview Page Next Page

Research Paper

Effects of M&A among Energy Companies using Event Study Analysis: Case of National Oil Company 에너지기업의 인수합병 효과분석: 국영자원개발기업을 중심으로: 유경진
Kyungjin Yoo

30 June 2013. pp. 339-347

PDF

Abstract

The number of M&As in energy sector is the largest of all M&As taking 25.6 percent of total. Especially, recent activities of National Oil Companies(NOC) are particularly noticeable. The purpose of this study is to analyze current situations of M&As of energy companies and verify its economic effects on enterprise value. The study has the following implications. First, M&A of NOC begets some advantages to enterprise value unlike other energy companies. Second, NOC could not expect operation synergy and risk diversification through M&A with service company. Third, as low oil-producing countries’ M&As are concentrated in downstream sector which provides stable demand of oil and creates regular profits, stability is the very essential factor which should be considered when NOC undertakes M&A.

Keywords

National Oil Company

M&A

Related diversification

Event study analysis

본 연구는 에너지기업 인수합병의 현황을 분석하고 인수합병이 기업에 미친 경제적 효과에 대한 실증 분석을 하는데 목적이 있다. 에너지 시장의 인수합병은 전 세계 인수합병 거래의 25.6%를 차지하며 산업 별 인수합병에서 가장 큰 부분을 차지하고 있으며 특히 최근 국영자원개발기업의 활발한 활동이 두드러진다. 따라서 본 연구에서는 국영자원개발기업의 인수합병을 대상으로 인수합병의 경제적 효과에 대한 유의성을 사건연구분석(event study)을 이용하여 검증하였다. 나아가 분석 결과를 바탕으로 국영자원개발기업 인수합병의 기대효과를 이론적으로 정리하였다. 국영자원개발기업의 인수합병은 긍정적인 효과가 있다는 결과를 얻었으며 인수합병의 방향은 다음과 같다. 먼저, 국영자원개발기업의 인수합병은 하류부문 위주의 수직계열화가 서비스기업과의 인수합병보다 긍정적이며, 특히 한국석유공사와 같이 규모가 작은 기업은 안정적인 수익을 가져다주는 하류부문 기업과의 인수합병이 우선적으로 고려되어야 할 것이다.

키워드

국영자원개발기업

인수합병

관련다각화

사건 연구

References

Allen & Overy, 2012, “The Allen & Overy M&A Index: 2011,” Allen & Overy LLP.
Cho, J., 2010, “The Role of National Oil Companies in the oil and gas cooperation between China and Kazakhstan: CNPC and Kazmunagias,” Slav newspaper, Vol. 25, No. 3, pp. 141-167.
Choi, S. and Kim, K., 2009, Study on Overseas Resource Development & Strategy, 09-24, Korea Energy Economics Institute Research Paper, Seoul, Korea.
Choi, S. and Song, M., 2007, Analysis of motivation of M&A in international Oil upstream sector and its post effect, 07-04, Korea Energy Economics Institute Research Paper, Seoul, Korea.
Demirer, R. and Ali, M.K., 2010, “The Behavior of Crude Oil Spot and Futures Prices around Opec and Spr Announcements: An Event Study Perspective.” Energy Economics, Vol.32, No. 6, pp. 1467-1476.
Do, H. and Jung, W., 2010, Study on Overseas Resource Development & Strategy, 10-23, Korea Energy Economics Institute Research Paper, Seoul, Korea.
Eisenbach, S., Ettenhuber, C., Schiereck, D. and Flotow, P., 2011, “Beginning Consolidation in the Renewable Energy Industry and Bidders’ M&a-Success.” Technology and Investment, Vol.2, pp. 81-91.
Fama, E.F., Fisher, L., Jensen, M.C. and Roll, R., 1969, “The Adjustment of Stock Prices to New Information.” International Economic Review, Vol.10, No. 1, pp. 1-21.
Keller, A., 2010, “Competition effects of mergers_ An event study of the German electricity market,” Energy Policy, Vol. 38, pp. 5264-5271. 유 경 진 2011년 서울대학교 에너지자원공학과 공학사 2013년 서울대학교 에너지시스템공학부 석사 현재 서울대학교 에너지시스템공학부 (E-mail; angelhoi01@snu.ac.kr)
Kennedy, D., 1997, “Merger in the English Electricity Industry.” Energy Policy, Vol.25, No. 4, pp. 393-399.
Kim, Y., 2009, “A Study on M&A Behaviors in Mining Industry since the year of 2000,” J. of Korean Society for Geosystem Engineering, Vol.46, No. 1, pp. 87-96.
Kwoka, J. and Pollitt, M., 2010, “Do mergers improve efficiency-Evidence from restructuring the US electric power sector,” International J. of Industrial Organization, Vol. 28, pp. 645-656.
MacKinlay, A.C., 1997, “Event Studies in Economics and Finance,” J. of Economic Literature, Vol. 35, pp. 13-39.
Mckenzie, A.M., Thomsen M.R. and Dixon B.L., 2004, “The Performance of Event study approaches using daily commodity futures returns,” The J. of Futures Markets, Vol. 24, No. 6, pp. 533-555.
Oh, B., Park, J.Y., Chung, S.H. and Choi, K.H., 2010, “Effects of Korean Service Quality Awards on the Market Value by using Event Study Methodology,” Korean Operations Research and Management Science, Vol. 27, No. 3, pp. 161-196.
Schwert, G.W., 1981, “Using Financial Data to Measure Effects of Regulation.” J. of law and Economics, Vol.24, No. 1, pp. 121-158.
Verde, S., 2008, “Everybody merges with somebody-The wave of M&As in the energy industry and the EU merger policy,” Energy Policy, Vol. 36, pp. 1125-1133.
Warell, L., 2007, “A horizontal merger in the iron ore industry_An event study approach,” Resources Policy, Vol. 32, pp. 191-204.

Information

Publisher :The Korean Society of Mineral and Energy Resources Engineers
Publisher(Ko) :한국자원공학회
Journal Title :Journal of the Korean Society of Mineral and Energy Resources Engineers
Journal Title(Ko) :한국자원공학회지
Volume : 50
No :3
Pages :339-347
DOI :https://doi.org/10.12972/ksmer.2013.50.3.339

[1] Allen & Overy, 2012, “The Allen & Overy M&A Index: 2011,” Allen & Overy LLP.

[2] Cho, J., 2010, “The Role of National Oil Companies in the oil and gas cooperation between China and Kazakhstan: CNPC and Kazmunagias,” Slav newspaper, Vol. 25, No. 3, pp. 141-167.

[3] Choi, S. and Kim, K., 2009, Study on Overseas Resource Development & Strategy, 09-24, Korea Energy Economics Institute Research Paper, Seoul, Korea.

[4] Choi, S. and Song, M., 2007, Analysis of motivation of M&A in international Oil upstream sector and its post effect, 07-04, Korea Energy Economics Institute Research Paper, Seoul, Korea.

[5] Demirer, R. and Ali, M.K., 2010, “The Behavior of Crude Oil Spot and Futures Prices around Opec and Spr Announcements: An Event Study Perspective.” Energy Economics, Vol.32, No. 6, pp. 1467-1476.

[6] Do, H. and Jung, W., 2010, Study on Overseas Resource Development & Strategy, 10-23, Korea Energy Economics Institute Research Paper, Seoul, Korea.

[7] Eisenbach, S., Ettenhuber, C., Schiereck, D. and Flotow, P., 2011, “Beginning Consolidation in the Renewable Energy Industry and Bidders’ M&a-Success.” Technology and Investment, Vol.2, pp. 81-91.

[8] Fama, E.F., Fisher, L., Jensen, M.C. and Roll, R., 1969, “The Adjustment of Stock Prices to New Information.” International Economic Review, Vol.10, No. 1, pp. 1-21.

[9] Keller, A., 2010, “Competition effects of mergers_ An event study of the German electricity market,” Energy Policy, Vol. 38, pp. 5264-5271. 유 경 진 2011년 서울대학교 에너지자원공학과 공학사 2013년 서울대학교 에너지시스템공학부 석사 현재 서울대학교 에너지시스템공학부 (E-mail; angelhoi01@snu.ac.kr)

[10] Kennedy, D., 1997, “Merger in the English Electricity Industry.” Energy Policy, Vol.25, No. 4, pp. 393-399.

[11] Kim, Y., 2009, “A Study on M&A Behaviors in Mining Industry since the year of 2000,” J. of Korean Society for Geosystem Engineering, Vol.46, No. 1, pp. 87-96.

[12] Kwoka, J. and Pollitt, M., 2010, “Do mergers improve efficiency-Evidence from restructuring the US electric power sector,” International J. of Industrial Organization, Vol. 28, pp. 645-656.

[13] MacKinlay, A.C., 1997, “Event Studies in Economics and Finance,” J. of Economic Literature, Vol. 35, pp. 13-39.

[14] Mckenzie, A.M., Thomsen M.R. and Dixon B.L., 2004, “The Performance of Event study approaches using daily commodity futures returns,” The J. of Futures Markets, Vol. 24, No. 6, pp. 533-555.

[15] Oh, B., Park, J.Y., Chung, S.H. and Choi, K.H., 2010, “Effects of Korean Service Quality Awards on the Market Value by using Event Study Methodology,” Korean Operations Research and Management Science, Vol. 27, No. 3, pp. 161-196.

[16] Schwert, G.W., 1981, “Using Financial Data to Measure Effects of Regulation.” J. of law and Economics, Vol.24, No. 1, pp. 121-158.

[17] Verde, S., 2008, “Everybody merges with somebody-The wave of M&As in the energy industry and the EU merger policy,” Energy Policy, Vol. 36, pp. 1125-1133.

[18] Warell, L., 2007, “A horizontal merger in the iron ore industry_An event study approach,” Resources Policy, Vol. 32, pp. 191-204.

Journal of the Korean Society of Mineral and Energy Resources EngineersISSN:2288-0291(Print) 2288-2790(Online)한국자원공학회

All Issue