A Meta-Analytic Answer to an Old Dilemma : Do M&As Create Value? Evidence from European Banks
This paper aims at shedding further light on the controversial impact of Mamp;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 Mamp;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 Mamp;As are less profitable than European ones, and pre-announcement rumours significantly alter the overall performance