Do M&As generate value for shareholders?An analysis of the italian banking sector

The aim of this paper is to verify if the M&As implemented in the past decade in the banking sector have created value for shareholders. For this purpose a sample of 72 deals carried out during the period of 1994-2005 were examined using the “event study” methodology. These deals were subdivided into three sections: acquisitions, mergers and M&As. The results obtained seem to suggest a creation of value for the target companies and a destruction of value for the bidders in all three cases. From the analysis of the combined values, on the other hand, a significant destruction of value is deduced in both mergers and in M&As.