López Penabad, CeliaLópez Andión, María del CarmenIglesias Casal, AnaMaside Sanfiz, José Manuel2018-04-272018-04-272014-12-15López-Penabad, M., López-Andión, C., Iglesias-Casal, A., & Maside-Sanfiz, J. (2015). Securitization in Spain and the wealth effect for shareholders. International Review Of Economics & Finance, 37, 308-323. http://dx.doi.org/10.1016/j.iref.2014.12.0031059-0560http://hdl.handle.net/10347/16689This is an accepted manuscript of the article: López-Penabad, M., López-Andión, C., Iglesias-Casal, A., & Maside-Sanfiz, J. (2015). Securitization in Spain and the wealth effect for shareholders. International Review Of Economics & Finance, 37, 308-323. http://dx.doi.org/10.1016/j.iref.2014.12.003. © 2015. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/This paper examines the relationship between securitization, the issuing bank's overall exposure to risk and the response of the shareholder. Spanish securitization transactions are analyzed using event study methodology which reveals that securitization drains banks' wealth, was most pernicious immediately prior to the subprime crisis and affects small and medium-sized banks most with respect to mortgage collateral transactions. The indirect effect of securitization on originator risk does not affect share value, while the direct effect gives a positive relationship. This effect becomes non-significant in the years prior to the crisis and the shareholders no longer perceive this risk transfereng© 2014 Elsevier Inc. This manuscript version is made available under the CC-BY-NC-ND 4.0 license (http://creativecommons.org/licenses/by-nc-nd/4.0/)https://creativecommons.org/licenses/by-nc-nd/4.0/Wealth effectEvent studySecuritizationBankingjournal article10.1016/j.iref.2014.12.003open access