The effect of merger and acquisition announcement on Greek bank stock returns
Panayiotis Athanasoglou (),
Ioannis Asimakopoulos () and
Economic Bulletin, 2005, issue 24, 27-44
This study examines the response of Greek bank stock prices to the announcement of intended mergers and acquisitions (M&As) during the period 1998-1999, applying a standard event study methodology. The results show that both the acquiring banks and, albeit to a lesser extent, the target banks experience significant positive abnormal stock returns that last for a few days around the announcement date. These returns are more evident in the period before the announcement thus indicating either that rumours circulate or that inside information is being abused. The efficient market hypothesis in its semi-strong form seems to be violated for the period under examination, as abnormal returns remain evident for several days after the announcement date.
Keywords: Mergers and acquisitions; event study analysis; abnormal returns (search for similar items in EconPapers)
JEL-codes: G14 G21 G34 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (49) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bog:econbl:y:2005:i:24:p:27-44
Access Statistics for this article
Economic Bulletin is currently edited by Dimitris Malliaropulos
More articles in Economic Bulletin from Bank of Greece Contact information at EDIRC.
Bibliographic data for series maintained by Christina Tsochatzi ().