Journal of
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Forum | Papers » Shareholder value creation and risks in European banks

Shareholder value creation and risks in European banks

Franco Fiordelisi
September 2010 - n°9
Jel codes: M41, G14, G21

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 financial leverage. In contrast, deposit and loan growth, liquidity risk and domestic inflation adversely impact on value creation