42 Pages Posted: 26 Jul 2011
Date Written: July 26, 2011
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 and 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 involve non-banking financial partners and allow banks to expand abroad; domestic strategic alliances also lead banks to create shareholder value.
Keywords: strategic alliances, joint ventures, banking, event study
JEL Classification: G14, G21, L24
Suggested Citation: Suggested Citation
Amici, Alessandra and Fiordelisi, Franco and Masala, Francesco and Ricci, Ornella and Sist, Federica, Value Creation in Banking Through Strategic Alliances and Joint Ventures (July 26, 2011). Available at SSRN: https://ssrn.com/abstract=1895325 or http://dx.doi.org/10.2139/ssrn.1895325