Creation of Value for the Shareholders of the Bank Santander 1991-2006

40 Pages Posted: 24 Jan 2007

See all articles by Pablo Fernandez

Pablo Fernandez

University of Navarra - IESE Business School

Jose M. Carabias

London School of Economics & Political Science (LSE) - Department of Economics

Date Written: January 24, 2007

Abstract

We compute the Shareholder Value Creation of Banco Santander (SAN). The market cap of BS increased between December 1991 and December 2005 in 85.7 billion euros. The shareholder value creation during this period was 20.7 billion euros. The average shareholder return of BS in this 15-year period was 18.7%, higher than that of the IBEX 35 (15.4%). Average inflation was 3.3%. We also compare the shareholder return with that of other banks. In December 2006 BS was the biggest company in the IBEX 35 and the 4th biggest of the EuroStoxx 50.

Keywords: Santander, IBEX, EuroStoxx, shareholder value creation

JEL Classification: G12, G31, M21

Suggested Citation

Fernandez, Pablo and Carabias, Jose M., Creation of Value for the Shareholders of the Bank Santander 1991-2006 (January 24, 2007). Available at SSRN: https://ssrn.com/abstract=959112 or http://dx.doi.org/10.2139/ssrn.959112

Pablo Fernandez (Contact Author)

University of Navarra - IESE Business School ( email )

Camino del Cerro del Aguila 3
28023 Madrid
Spain
+34 91 357 0809 (Phone)
+34 91 357 2913 (Fax)

HOME PAGE: http://web.iese.edu/PabloFernandez/

Jose M. Carabias

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

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