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Do M&As Create Value for Shareholders? The Short-term Wealth Effect

  • Franco Fiordelisi
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

The phenomenon of Merger and Acquisition (M&A) has been the object of many empirical studies in the past decade, especially with the United States banking sector. As shown in Chapter 2, the M&A phenomenon is very important in Europe: there has been a rising trend in M&As since 2001 both in terms of number of deals and of their value. In 2006 only there were around 1100 M&A deals between banks in the Euro area for an overall value of more than 130 Euro billion. The impact created by M&As in the short term has been investigated by a number of studies in Europe focusing on M&A deals over the 1990s. Namely Beitel et al., (2001; 2004) examined 98 mergers between European banks during the period 1985–2000. Cybo-Ottone and Murgia (2000) analyzed a sample of 72 European banks with a value higher than 100 million dollars during the period 1988–97.

Keywords

Abnormal Return Event Period Euro Area Event Window Capital Asset Price Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Franco Fiordelisi 2009

Authors and Affiliations

  • Franco Fiordelisi
    • 1
  1. 1.University of Rome IIIItaly

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