Issues in Business Management and Economics
Vol.4 (3), pp. 24-32, May 2016
Available online at https://www.journalissues.org/IBME/
Article ID /BM/15/075/09 pages
Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License.
Original Research Article
European banks in China: An event study analysis
Loris Nadotti and Valeria Vannoni*
University of Perugia, Italy.
*Corresponding Author Email: firstname.lastname@example.org,
This paper analyses the impact of accessing Chinese credit market on European banks, as they are the main foreign investors in this market. The impact is assessed in terms of changes in the share prices of European banks following the announcement of operations on the Chinese credit market. Empirical verification is conducted through an event study methodology. The analysis refers to the 2001-2014 period. Results show that the announcement of an operation in China has a positive impact on the value of the European bank itself, albeit limited and with different levels.
JEL Code: O5; G21; G14.
Key words: Foreign banks, event study, Chinese credit market.