Abstract:

The acceleration of the movement of concentration and reorganization of the banking in the United States as in Europe was spectacular since the beginning of 1999. The object of this research is to analyze the stock market valuation of European and American bank’s merger announcement. By using a traditional methodology of study of event, our work suggests several results. Firstly, the existence of the positive and significant cumulative average abnormal return conduces to accept our first hypothesis. Secondly, this study establishes a very clear distinction between the domestic merger’s announcements for which the markets react positively and cross border mergers are received unfavourably. Lastly, the results show a difference between the announcement effects of European bank mergers compared to those in the American.