Please enter abstraThis paper investigates the determinants of shareholder value creation focussing on both listed and non-listed European banks over 1997-2002. We find that cost and profit efficiency have a positive influence on shareholder value creation. Leverage is also found to be inversely related to shareholder value creation. Other factors that are found to impact positively on value ... [Show full abstract] creation include deposit and loan growth rates, market concentration and employee costs. Finally, substantial variations exist in shareholder value creation across European countries, bank ownership types and also over time.