Do Romanian Banking Institutions Create Shareholder Value?

This study aims at identifying the evolution of some of the key value based indicators in the case of Romanian listed banks. In particular we compute value based measures like Residual Income RI and Market Value Added MVA but also traditional measures like Earnings per Share EPS and Price to Earnings ratio PER in order to have a detailed view on the evolution of shareholder value creation in the banking industry for last seven years 2005-2011. As results suggest BRD represents the greater shareholder value creator in the case of the listed banks. On the other hand EBS is the greater value destroyer. The other listed banks TLV and BCC can be characterized as value preserver as they don’t destroy nor create shareholder value.