The rise of digitalization and advancements in information technology are changing the business environment in a radical manner. In the banking sector specifically, in response to these recent trends and embracing the Open Innovation (OI) framework, banks increasingly seek mergers and acquisitions (M&As) with fintech firms. Since it is unclear what is the impact of these M&A transactions, this research investigates their effect on an acquiring bank’s future profits. To this end, the study applies an event study methodology to measure the stock market reaction to the announcements of M&A operations. In addition to advancing scientific knowledge about the effects brought about by fintech M&As on a bank’s future profits, and more broadly shedding light on the boundary conditions that make OI practices beneficial for organizations, the findings of this study are also relevant for managers because they provide preliminary advice on which acquisitions are more beneficial for banks.

Banks responding to the digital surge through Open Innovation: Stock market performance effects of M&As with fintech firms / Oriani, Raffaele; Peruffo, Enzo; Cappa, Francesco; Collevecchio, Francesca. - In: JOURNAL OF ECONOMICS AND BUSINESS. - ISSN 0148-6195. - 121:(2022), pp. 1-11. [10.1016/j.jeconbus.2022.106079]

Banks responding to the digital surge through Open Innovation: Stock market performance effects of M&As with fintech firms

Oriani Raffaele
;
Peruffo Enzo
;
Cappa Francesco
;
2022

Abstract

The rise of digitalization and advancements in information technology are changing the business environment in a radical manner. In the banking sector specifically, in response to these recent trends and embracing the Open Innovation (OI) framework, banks increasingly seek mergers and acquisitions (M&As) with fintech firms. Since it is unclear what is the impact of these M&A transactions, this research investigates their effect on an acquiring bank’s future profits. To this end, the study applies an event study methodology to measure the stock market reaction to the announcements of M&A operations. In addition to advancing scientific knowledge about the effects brought about by fintech M&As on a bank’s future profits, and more broadly shedding light on the boundary conditions that make OI practices beneficial for organizations, the findings of this study are also relevant for managers because they provide preliminary advice on which acquisitions are more beneficial for banks.
2022
Bank; Fintech; M&A; Future profits; Stock market performance; Stock market reaction; Open Innovation
Banks responding to the digital surge through Open Innovation: Stock market performance effects of M&As with fintech firms / Oriani, Raffaele; Peruffo, Enzo; Cappa, Francesco; Collevecchio, Francesca. - In: JOURNAL OF ECONOMICS AND BUSINESS. - ISSN 0148-6195. - 121:(2022), pp. 1-11. [10.1016/j.jeconbus.2022.106079]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/224023
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