The impact of M&As on shareholders’ wealth: evidence from Greece

George Giannopoulos, Alexandra Lianou, Mahmoud Elmarzouky*

*Corresponding author for this work

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This study aims to investigate the effect of mergers and acquisitions (M&A) on shareholders’ wealth. Additionally, this study investigates the impact of the economic crisis during 2007–2008 on the shareholders’ perceptions of gaining additional value from mergers and acquisitions. In this paper, a sample of 84 M&As from 2006 to 2015 in Greece are studied to investigate the effect on shareholders of bidder companies. We find significantly negative abnormal returns just before the announcement of M&A, which negatively affects the bidder firms’ value. It is also observed that after 2009 M&A cases decreased, maybe because of the crisis in Greece that changed the investors’ perception of a value-destroying event. Companies that engage in M&A activities during economic downturns tend to experience a decline in shareholder value. This could be due to various factors, such as increased uncertainty and risk associated with such activities during economic uncertainty. By understanding the potential impact of such activities on shareholder value, companies can make more informed decisions about whether and when to pursue M&A opportunities.
Original languageEnglish
Article number199
Number of pages25
JournalJournal of Risk and Financial Management
Issue number3
Publication statusPublished - 23 Mar 2023


  • Mergers and acquisitions (M&As)
  • Bidders
  • Shareholders wealth
  • Value creation


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