Drivers of Shareholder Value Creation in M&A: Event Study of the European Banking Sector in the Post-financial Crisis Era

Gimede Gigante, Mario Baldacchini and Andrea Cerri
Additional contact information
Mario Baldacchini: Bocconi University
Andrea Cerri: Bocconi University

Chapter Chapter 9 in Creating Value and Improving Financial Performance, 2023, pp 239-265 from Palgrave Macmillan

Abstract: Abstract The paper investigates the factors driving shareholder value creation following extraordinary financial transactions in the European banking sector after the 2007–2008 crisis. The study analyzes a sample of transactions between commercial banks announced between 2010 and 2020, to verify whether these acquisitions resulted in the creation of value for acquirers. It is found positive and statistically significant abnormal returns for the acquirers at the time of announcement. When identifying some aspects of the target that influence the returns, the study tests whether the market, in a period of crisis, recognizes a premium if the target is “good.” The paper finds that the market valorizes target companies with low NPL ratios, high levels of capitalization with respect to the credit granted, and balanced exposure to interest rates.

Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-24876-4_9

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031248764

DOI: 10.1007/978-3-031-24876-4_9

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().