285
Views
6
CrossRef citations to date
0
Altmetric
Articles

Are mergers and acquisitions in the petroleum industry affected by oil prices?

, , &
Pages 420-427 | Published online: 03 Mar 2017
 

ABSTRACT

This paper contributes to the literature on crude oil price behavior and examines how this affects mergers and acquisitions (M&A) in the petroleum industry in the US. The paper analyzes the relationship of these two series by studying its dynamic in the time–frequency domain. The novelty of this study’s approach lies in the application of wavelet tools for its resolution. Monthly data are used in this study, covering the period January 1980–June 2012. It was observed that there was a shift to higher frequencies of the wavelet coherency during the mid-1990s and the late 2000s. The results also indicate that during the mid-1990s and the late-2000s, an increase in M&A took place that was led by the increase in West Texas Intermediate crude oil prices.

Funding

Fernando Perez de Gracia acknowledges financial support from the Spanish Ministry of Economics and Competitiveness through project ECO-2014-55496R.

Notes

1 Hogan and Lakey (Citation2005) worked about the comparison between time-frequency and time-scale (wavelets) methods.

2 The database was obtained from Dow Jones & Company, Spot Oil Price: West Texas Intermediate (DISCONTINUED SERIES)© [OILPRICE], retrieved from FRED, Federal Reserve Bank of St. Louis. https://research.stlouisfed.org/fred2/series/OILPRICE/, September 8, 2015.

3 Coherency ranges from blue (low coherency) to red (high coherency). The cone of influence is shown with a thick line, which is the region subject to border distortions.

Additional information

Funding

Fernando Perez de Gracia acknowledges financial support from the Spanish Ministry of Economics and Competitiveness through project ECO-2014-55496R.

Log in via your institution

Log in to Taylor & Francis Online

PDF download + Online access

  • 48 hours access to article PDF & online version
  • Article PDF can be downloaded
  • Article PDF can be printed
USD 61.00 Add to cart

* Local tax will be added as applicable

Related Research

People also read lists articles that other readers of this article have read.

Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine.

Cited by lists all citing articles based on Crossref citations.
Articles with the Crossref icon will open in a new tab.