The recent financial crisis has shown that the stability of the investment banking industry plays a key role for the soundness of the financial system as a whole. Do high competition and/or cost inefficiencies increase investment banks' insolvency (and capital) risks? Or, conversely, do...

This paper examines the determinants of shareholder value creation for a large sample of European banks. By using a panel data model, we find that bank profits and shareholder value are positively influenced by cost and profit efficiency, operational risk exposure, unexpected credit losses and...

This paper examines shareholder value drivers in European banking focusing on the efficiency and productivity features of individual banks. In particular, we analyse the value relevance of bank cost efficiency and total factor productivity (TFP) (in all its components, including technological...

The recent period of crisis in credit markets has highlighted the crucial role of bank risk taking. Our paper assesses the inter-temporal relationships among bank efficiency, capital and bank risk-taking in the EU-26 commercial banking industry between 1995 and 2007. Our results support the bad...

We study the effect of corporate culture on the outcomes of large merger and acquisition (M&A) deals. Using a measure of cultural orientation developed in Organization Behavior, we quantify corporate culture by assessing corporate documents using a text analysis approach. We use this...

We evaluate the impact of commonly used indicators of bank distress on broad (sector and country) risks. Our results show that several measures of individual bank risk impact on banking (systemic) and overall (systematic) stock market risk. Our results provide strong evidence suggesting that...

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...

We analyze whether relationship lending reduces borrowers' probability of default and, if so, whether this beneficial effect also applies to borrowers who are more exposed to the economic downturn. By using unique, matched data of 43,000 firms and their lending institutions between 2008 and...