Do M&amp;As Generate Value for Shareholders? An Analysis of the Italian Banking Sector

descriptionPublicationkeyboard_double_arrow_right Article , Other literature type 01 Jan 2012 Italy English Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

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Authors: INTRISANO, Carmelo; ROSSI, Fabrizio;

doi: 10.2139/ssrn.2419853

handle: 11368/3045335 , 11368/3045347 , 11580/23704

Do M&As Generate Value for Shareholders? An Analysis of the Italian Banking Sector

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Abstract

The aim of this paper is to verify if the M&As implemented in the past decade in the banking sector have created value for shareholders. For this purpose a sample of 72 deals carried out during the period of 1994-2005 were examined using the “event study” methodology. These deals were subdivided into three sections: acquisitions, mergers and M&As. The results obtained seem to suggest a creation of value for the target companies and a destruction of value for the bidders in all three cases. From the analysis of the combined values, on the other hand, a significant destruction of value is deduced in both mergers and in M&As.

Country

Italy

Related Organizations

University of Trieste
Italy
University of Cassino and Southern Lazio
Italy

Keywords

portfolio choice, mergers and acquisition, bank, portfolio choice, investment decisions, mergers and acquisitions, banks, event studies, event studies, investment decision, portfolio choice; investment decisions; mergers and acquisitions; banks; event studies

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