Shareholder wealth effects from mergers and acquisitions in the Greek banking industry
AbstractThis paper examines the shareholder wealth effects of mergers and acquisitions in the Greek banking industry from 1995 to 2001, using the “event study methodology”. The results suggest that targets’ shareholders earned significant abnormal returns upon the announcement of horizontal and diversifying deals. On the other hand, bidders’ shareholders had significant losses in cases of horizontal and zero effects in diversifying deals. Although mergers and acquisitions in the Greek banking industry are not found to be value-enhancing, they can be rationalized as an external growth strategy, whose goal was to strengthen the position of the participants in the domestic market and help them become more tenacious in a fiercely competitive international environment.
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Bibliographic InfoPaper provided by University of Crete, Department of Economics in its series Working Papers with number 0612.
Length: 18 pages
Date of creation: 31 May 2006
Date of revision:
Mergers and Acquisitions; Banking; Valuation effects;
Other versions of this item:
- Constantine Manasakis, 2009. "Shareholder wealth effects from mergers and acquisitions in the Greek banking industry," International Journal of Banking, Accounting and Finance, Inderscience Enterprises Ltd, vol. 1(3), pages 242-256.
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-10-07 (All new papers)
- NEP-BAN-2006-10-07 (Banking)
- NEP-CFN-2006-10-07 (Corporate Finance)
- NEP-COM-2006-10-07 (Industrial Competition)
- NEP-FIN-2006-10-07 (Finance)
- NEP-FMK-2006-10-07 (Financial Markets)
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