The Influence of the Globalisation Factor on Premiums in Merger and Acquisition Deals of Electric Power Companies

DOI

10.2991/aebmr.k.200312.450How to use a DOI?

Abstract

The article proposes a method for assessing the influence of globalisation on premiums in merger and acquisition (M&A) deals of electric power companies. The independent variable in the research is a relative premium value, i.e., an excess of the amount paid in a deal (in view of the share) over the modeled enterprise value. The authors justify the use of the KOF index (in the context of six components making up the index) to assess the consequences of globalisation for the relative premium in M&A deals of electric power companies. The identified factors were quantified on the ground of a database including 1957 M&A deals over the period from 1997 to 2019. The authors proved the influence of the EURIBOR interest rate on the relative premium value in a deal. They confirmed the contradictory influence of the globalisation process on the relative premium value in M&A deals.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - I I Prosvirina
AU  - A V Sterkhov
PY  - 2020
DA  - 2020/03/17
TI  - The Influence of the Globalisation Factor on Premiums in Merger and Acquisition Deals of Electric Power Companies
BT  - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020)
PB  - Atlantis Press
SP  - 3134
EP  - 3140
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200312.450
DO  - 10.2991/aebmr.k.200312.450
ID  - Prosvirina2020
ER  -