A Meta-Analytic Answer to an Old Dilemma: Do M&As Create Value? Evidence from European Banks

2007 Academy of Management Annual Meeting

28 Pages Posted: 10 Mar 2008

See all articles by Laura Toschi

Laura Toschi

University of Bologna - Department of Management

Enrica Bolognesi

University of Bologna - Department of Management

Federica Angeli

University of Bologna - Department of Management

Date Written: November 1, 2007

Abstract

This paper aims at shedding further light on the controversial impact of M&As on the value creation perceived by investors, as the short-term market performance of the firms involved. 17 event studies are surveyed following meta-analytical procedure, gathering roughly 931 deals: separate analyses are run for bidders, targets and combined entities. Our findings highlight the insensitiveness of bidders to M&As' announcement. Furthermore, the choice of the benchmark in the market model, the geographical scope and the event window position prove to be significant moderators: Italian M&As are less profitable than European ones, and pre-announcement rumours significantly alter the overall performance.

Keywords: M&A, European banks, meta-analysis, event studies

Suggested Citation

Toschi, Laura and Bolognesi, Enrica and Angeli, Federica, A Meta-Analytic Answer to an Old Dilemma: Do M&As Create Value? Evidence from European Banks (November 1, 2007). 2007 Academy of Management Annual Meeting. Available at SSRN: https://ssrn.com/abstract=983320 or http://dx.doi.org/10.2139/ssrn.983320

Laura Toschi (Contact Author)

University of Bologna - Department of Management ( email )

Via Capo di Lucca, 34
40126 Bologna
Italy
00390512090214 (Phone)

Enrica Bolognesi

University of Bologna - Department of Management ( email )

Via Capo di Lucca 34
Bologna, 40126
Italy
+390512098073 (Phone)
+39051246411 (Fax)

Federica Angeli

University of Bologna - Department of Management ( email )

Piazza Scaravilli 1
Bologna, Bologna 40126
ITALY

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