| Title | Impact of the financial crisis on banking acquisitions: a look at shareholder wealth |
|---|---|
| Authors | Rao-Nicholson, Rekha and Salaber, Julie |
| Abstract | This paper examines the influence of the 2007–08 financial crisis on value creation for acquirer’s shareholders in the banking industry using a sample of 883 deals over 2004–12. Applying an exploratory and top-down approach, banking acquisitions are considered at the global level, narrowing the analysis step by step to consider domestic versus cross-border acquisitions. Then cross-border deals are split based on the economic development of the acquirer and target countries. It is observed that only acquisitions involving emerging-economy acquirers and developed-economy targets generate positive and significant returns to shareholders after the crisis. Major changes in the global acquisition landscape are also observed since 2007, with emerging-economy banks increasing their acquisition activity, both nationally and internationally. |
| Keywords | Banking Sector, Acquisitions, Emerging Economies, Financial Crisis, Shareholder Returns |
| Journal | International Journal of the Economics of Business |
| Journal citation | 22 (1), pp. 87-117 |
| ISSN | 1357-1516 |
| Year | 2015 |
| Publisher | Taylor & Francis |
| Accepted author manuscript | |
| Digital Object Identifier (DOI) | doi:10.1080/13571516.2014.982901 |
| Publication dates | |
| Published | 21 Jan 2015 |