Beltratti, Andrea and Paladino, Giovanna (2011): Is M&A different during a crisis? Evidence from the European banking sector.
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The financial crisis has affected the landscape of the banking sector around the world. We use a sample of transactions taking place in Europe in 2007-2010 to study the acquirer’s stock price market reaction to announcements and completions of acquisitions. We find that there are no significant abnormal returns around the announcement of an acquisition while there are positive abnormal returns at completions. We study the cross-sectional determinants of abnormal returns and find that announcement returns are mainly explained by the acquirer bank characteristics, while completion returns depend on opacity of the target and in large part on the drop in volatility associated with a reduction of uncertainty.
|Item Type:||MPRA Paper|
|Original Title:||Is M&A different during a crisis? Evidence from the European banking sector|
|Keywords:||Mergers and Acquisitions; Banks; Opacity; Financial crisis|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||Giovanna Paladino|
|Date Deposited:||28. Nov 2011 19:45|
|Last Modified:||11. Feb 2013 18:54|
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