M&As in Banking: Measurement of Some Effects

Abstract

There are several key factors underlying bank mergers:² important objectives include geographical expansion, aimed at controlling new markets, the diversification of areas of business and sources of revenue, and the creation of value for shareholders. The relative importance of these determinants of banks’ strategies has changed gradually: M&As have evolved from a means of achieving domestic or international external growth to an attempt to stabilise revenues through the diversification of strategic segments and, finally, to a mechanism for the creation of shareholder value.

The authors wish to express their particular thanks to Mr Alessandro Figliuolo for his contribution to the chapter.