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2023 | OriginalPaper | Chapter

9. Drivers of Shareholder Value Creation in M&A: Event Study of the European Banking Sector in the Post-financial Crisis Era

Authors : Gimede Gigante, Mario Baldacchini, Andrea Cerri

Published in: Creating Value and Improving Financial Performance

Publisher: Springer International Publishing

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Abstract

The paper investigates the factors driving shareholder value creation following extraordinary financial transactions in the European banking sector after the 2007–2008 crisis. The study analyzes a sample of transactions between commercial banks announced between 2010 and 2020, to verify whether these acquisitions resulted in the creation of value for acquirers. It is found positive and statistically significant abnormal returns for the acquirers at the time of announcement. When identifying some aspects of the target that influence the returns, the study tests whether the market, in a period of crisis, recognizes a premium if the target is “good.” The paper finds that the market valorizes target companies with low NPL ratios, high levels of capitalization with respect to the credit granted, and balanced exposure to interest rates.

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previous chapter An Interdisciplinary Approach to Economic Texts: The “Considerazioni Finali” by the Governor of the Bank of Italy as a Case Study

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Title: Drivers of Shareholder Value Creation in M&A: Event Study of the European Banking Sector in the Post-financial Crisis Era
Authors: Gimede Gigante
Mario Baldacchini
Andrea Cerri
Publisher: Springer International Publishing
Book: Creating Value and Improving Financial Performance
Print ISBN: 978-3-031-24875-7

Electronic ISBN: 978-3-031-24876-4

Copyright Year: 2023
DOI: https://doi.org/10.1007/978-3-031-24876-4_9

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