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Value creation in banking through strategic alliances and joint ventures

Author

Listed:
  • Amici, Alessandra
  • Fiordelisi, Franco
  • Masala, Francesco
  • Ricci, Ornella
  • Sist, Federica

Abstract

A large number of studies (DeYoung et al., 2009) analyze merger outcomes in the financial industry, while other forms of business cooperation are still poorly investigated. Our paper examines results of strategic alliances and joint ventures in European and US banking over the period 1999–2009. First, we estimate abnormal returns around the deal announcement date and then these are regressed on a large set of explanatory variables. We show that joint ventures create shareholder value when involving non-banking financial partners and allowing banks to expand abroad, while international strategic alliances tend to destroy shareholder value.

Suggested Citation

  • Amici, Alessandra & Fiordelisi, Franco & Masala, Francesco & Ricci, Ornella & Sist, Federica, 2013. "Value creation in banking through strategic alliances and joint ventures," Journal of Banking & Finance, Elsevier, vol. 37(5), pages 1386-1396.
  • Handle: RePEc:eee:jbfina:v:37:y:2013:i:5:p:1386-1396
    DOI: 10.1016/j.jbankfin.2012.03.028
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Chen, Jun & King, Tao-Hsien Dolly & Wen, Min-Ming, 2015. "Do joint ventures and strategic alliances create value for bondholders?," Journal of Banking & Finance, Elsevier, vol. 58(C), pages 247-267.
    2. repec:eee:jbfina:v:80:y:2017:i:c:p:1-13 is not listed on IDEAS
    3. Sahin, Cenkhan & de Haan, Jakob, 2016. "Market reactions to the ECB’s Comprehensive Assessment," Economics Letters, Elsevier, vol. 140(C), pages 1-5.
    4. repec:eee:jebusi:v:95:y:2018:i:c:p:141-163 is not listed on IDEAS
    5. Zhang, Xiaoxiang & Wen, Jie, 2016. "The impacts of economic importance difference of a joint venture (JV) held by partners and partners' size difference on the extraction of rivalrous and non-rivalrous private benefits in a JV," International Review of Financial Analysis, Elsevier, vol. 48(C), pages 46-54.
    6. repec:eee:reveco:v:49:y:2017:i:c:p:515-535 is not listed on IDEAS
    7. repec:eee:finana:v:52:y:2017:i:c:p:190-202 is not listed on IDEAS

    More about this item

    Keywords

    Strategic alliances; Joint ventures; Banking; Event study;

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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