Do M&As Create Value for Shareholders? The Short-term Wealth Effect
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.
KeywordsAbnormal Return Event Period Euro Area Event Window Capital Asset Price Model
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