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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Italian Banking Sector and Value Creation
Author(s)
Carmelo Intrisano, Anna Paola Micheli
Full-Text PDF
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DOI:10.17265/1537-1506/2014.10.001
Affiliation(s)
Carmelo Intrisano, professor of Corporate Finance, Department of Economy and Law, University of Cassino, Cassino, Italy.
Anna Paola Micheli, Ph.D., research fellow in Corporate Finance, University of Cassino and Southern Lazio, Cassino, Italy.
ABSTRACT
The firm value is the fundamental topic of corporate finance. The value creation is the aim of economic initiatives, strategies, corporate policies, and all business activities, including banking. It depends, among other things, on size, legal form, and business model. Therefore, this paper wants to demonstrate and explain the differences about the value created in the Italian banking sector, where there is much diversity regarding size, legal form, and business model. This paper estimated and compared the value of Italian listed companies from 2010 to 2012 and found the result: Banks create more value if they are big and operate in investment banking. Furthermore, it proved that legal form hasn’t influenced performance and value of banks.
KEYWORDS
value creation, joint stock banks, co-operative banks, commercial banks, investment banks, return on equity (ROE), return on asset (ROA), market/book value
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