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Shareholder wealth effects from mergers and acquisitions in the Greek banking industry

Author

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  • Constantine Manasakis

    (Department of Economics, University of Crete)

Abstract

This 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.

Suggested Citation

  • Constantine Manasakis, 2006. "Shareholder wealth effects from mergers and acquisitions in the Greek banking industry," Working Papers 0612, University of Crete, Department of Economics.
    • Handle: RePEc:crt:wpaper:0612
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    File URL: http://economics.soc.uoc.gr/wpa/docs/MANASAKIS_M&A_GR_Bank.pdf
    File Function: First version, 2006
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    Cited by:

    1. Bisma Afzal Shah, 2019. "Shareholder Wealth Effects from Mergers and Acquisitions in the Indian Industry," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 10(1), pages 34-47, January.

    More about this item

    Keywords

    Mergers and Acquisitions; Banking; Valuation effects;
    All these keywords.

    JEL classification:

    • 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

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