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Title: Bank mergers and acquisitions in Greece: the financial crisis and its effect on shareholder wealth
Authors: Tampakoudis, Ioannis
Nerantzidis, Michail
Subeniotis, Demetres N.
Soutsas, Apostolos
Kiosses, Nikolaos
Type: Article
Subjects: FRASCATI::Social sciences::Economics and Business::Business and Management
FRASCATI::Social sciences::Economics and Business::Finance
Keywords: Banks
Mergers and acquisitions
Issue Date: 2019
Source: International Journal of Managerial Finance
Volume: 16
Issue: 2
First Page: 273
Last Page: 296
Abstract: Purpose The purpose of this paper is to investigate the wealth implications of bank mergers and acquisitions (M&As) in the unique Greek setting given the triple crisis phenomenon – banking, sovereign debt and economic crises – that prevailed after the global financial crisis. Design/methodology/approach The study examines bank M&As and bank transactions over the period from 1997 to 2018, as well as government-assisted M&As during the crisis. The wealth effects of bank M&As are assessed using both univariate and multivariate frameworks. Findings Findings show a neutral crisis effect on the valuation of M&As upon their announcement. However, the authors provide conclusive evidence that M&A completions are value-destroying events for acquiring banks during the crisis, far worse than in the pre-crisis period. Greek banks also fail to create value from government-assisted mergers. The results suggest that the financial stability and the prevention of further deepening of the Greek crisis with possible contagion effects were achieved at the expense of shareholders and taxpayers. Originality/value To the authors’ knowledge, this is the first study that examines the impact of the Greek triple crisis on the wealth effects of bank M&As and bank transactions. Also, the study provides first evidence with regard to the economic impact of government-assisted M&As in the European context.
ISSN: 1743-9132
Other Identifiers: 10.1108/IJMF-02-2019-0080
Appears in Collections:Department of Business Administration

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