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Why Study Shareholder Value Creation in European Banking?

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

Abstract

This book is concerned with the analysis of the relationship between shareholder value and its drivers in European banking markets. One might address the following four questions:
  1. 1.

    Why a book on ‘shareholder value’?

     
  2. 2.

    Is it necessary to have another contribution to the shareholder value debate?

     
  3. 3.

    Why banks?

     
  4. 4.

    Why in Europe?

     
With regard to the first question, shareholder value is currently one of the most widely studied areas in finance.l Shareholder value maximisation has become the primary business goal and performance target for most companies. Although managers and practitioners have traditionally criticised the notion that the objective in decision-making should be to maximise firm value, in the last decade, they have recognised that shareholder-value maximisation is at least an important priority for firms. It is possible to answer the first question by concluding that `shareholder value' is an area of research well-defined, robust and interesting for academics, regulators and practitioners.

Keywords

Data Envelopment Analysis Customer Satisfaction Total Factor Productivity Stochastic Frontier Analysis European Banking 
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 and Philip Molyneux 2006

Authors and Affiliations

  • Franco Fiordelisi
    • 1
  • Philip Molyneux
    • 2
  1. 1.University of Rome IIIRomeItaly
  2. 2.University of WalesBangorUK

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