The merger of Halliburton and Baker Hughes: a risk analysis

Evangelia Fragouli, Kwaku Donkor

    Research output: Contribution to journalArticle

    Abstract

    The aim of the present study is to explore the risks and benefits of mergers compared to those of strategic alliances and test the classic agency theory in relation to firm’s and shareholders interest. Using the case study methodology, the study examines the recent announced merger of Halliburton and Baker Hughes exploring the possible risks the merger itself may open up for the two firms, reviewing a possible alternative strategic alliance and the effects it may have. The paper applies a qualitative analysis based on empirical data of similar case studies projecting past experiences on future events. The study concludes that the merger was in the best interest of both companies, a merger though filled with the risk of specialisation within a shrinking market still poses the best rate of survival for firms in the gas and oil industry. The paper includes implications for strategic decision making and risk management policy in the oil & gas industry.
    Original languageEnglish
    JournalInternational Journal of Accounting, Finance, and Risk Management
    Publication statusPublished - 2017

    Fingerprint

    Risk analysis
    Mergers
    Strategic alliances
    Shareholders
    Reviewing
    Empirical data
    Oil
    Gas industry
    Risk management
    Qualitative analysis
    Agency theory
    Oil and gas industry
    Methodology
    Strategic decision making

    Keywords

    • merger
    • market
    • strategic alliance
    • risk
    • oil

    Cite this

    Fragouli, E., & Donkor, K. (2017). The merger of Halliburton and Baker Hughes: a risk analysis. International Journal of Accounting, Finance, and Risk Management.
    Fragouli, Evangelia ; Donkor, Kwaku. / The merger of Halliburton and Baker Hughes : a risk analysis. In: International Journal of Accounting, Finance, and Risk Management. 2017.
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    Fragouli, E & Donkor, K 2017, 'The merger of Halliburton and Baker Hughes: a risk analysis', International Journal of Accounting, Finance, and Risk Management.

    The merger of Halliburton and Baker Hughes : a risk analysis. / Fragouli, Evangelia; Donkor, Kwaku.

    In: International Journal of Accounting, Finance, and Risk Management, 2017.

    Research output: Contribution to journalArticle

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    Fragouli E, Donkor K. The merger of Halliburton and Baker Hughes: a risk analysis. International Journal of Accounting, Finance, and Risk Management. 2017.