Impact of mergers and acquisitions on stock prices: The U.S. ethanol-based biofuel industry

Aditya R. Khanal, Ashok K. Mishra, Kh A. Mottaleb

Research output: Contribution to journalArticlepeer-review

6 Scopus citations


Corporate restructuring activities in the form of mergers and acquisitions (M&As) are ongoing in the U.S. ethanol-based biofuel industry. With regard to M&As, a widespread concern is about financial performance of an individual firm and stable financial performance of the overall industry. Using an event analysis method, this study explores the impact of recent M&As on stock prices and value of the firm of publicly traded ethanol-based biofuel industry between 2010 and 2012 in the United States. Results regarding the average cumulative abnormal returns of acquiring firms suggest that the market positively responded toward recent M&As in the industry. Around 4% positive growth on a 60-day event window was attributed to M&As using market-adjusted market portfolio. A significant positive 0.47% gain in cumulative returns in a 4-day event window and a 2.7% positive gain in a 10-day event window were suggested by this study.

Original languageEnglish (US)
Pages (from-to)138-145
Number of pages8
JournalBiomass and Bioenergy
StatePublished - Feb 2014
Externally publishedYes


  • Acquisitions
  • Bioenergy
  • Biofuel
  • Ethanol
  • Event analysis
  • G34
  • Mergers
  • Q20
  • Q42
  • Q43

ASJC Scopus subject areas

  • Forestry
  • Renewable Energy, Sustainability and the Environment
  • Agronomy and Crop Science
  • Waste Management and Disposal


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