Impact of the financial crisis on banking acquisitions: a look at shareholder wealth

Rao-Nicholson, Rekha and Salaber, Julie 2015. Impact of the financial crisis on banking acquisitions: a look at shareholder wealth. International Journal of the Economics of Business . 22 (1), pp. 87-117. doi:10.1080/13571516.2014.982901

TitleImpact of the financial crisis on banking acquisitions: a look at shareholder wealth
AuthorsRao-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.

KeywordsBanking Sector, Acquisitions, Emerging Economies, Financial Crisis, Shareholder Returns
JournalInternational Journal of the Economics of Business
Journal citation22 (1), pp. 87-117
ISSN1357-1516
Year2015
PublisherTaylor & Francis
Accepted author manuscriptIJEB_open.pdf
Digital Object Identifier (DOI)doi:10.1080/13571516.2014.982901
Publication dates
Published21 Jan 2015

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