The role of ESG in acquirers' performance change after M&A deals

IF 5.5 Q1 BUSINESS, FINANCE

Green Finance Pub Date : 2021-01-01 DOI:10.3934/gf.2021015

Xuan Feng

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引用次数: 4

Abstract

This research aims to study the impact of the target's ESG score on the acquirer's ROA and stock price changes after M&A deals by regressing the percentage change of acquirer's performance change against the target's ESG score and a set of control variables. This research contributes to the current literature by exploring whether this impact is influenced by the acquirer's pre-M&A ESG level through two methods—expressing the coefficient of the target's ESG as s linear function of the acquirer's ESG and dividing the deals into two groups according to the acquirer's ESG level. The result of shows that the impact of the target's ESG score on the acquirer's ROA change is significant at 95% confidence level and varies for low-ESG and high-ESG acquirer groups. Although most acquirers suffer ROA declines one year after the deals, the ROA decline is aggravated for low-ESG acquirers but is relieved for high-ESG acquirers. This discrepancy can be attributed to the temporary integration costs that are higher for low-ESG acquirers than for high-ESG peers if the target's ESG level increases. Besides, this research concludes that the impact of the target's ESG score does not have a significant impact on the acquirer's stock price change before and after an M&A deal.

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ESG在并购后收购方绩效变化中的作用

本研究旨在通过对并购目标公司的ESG得分和一组控制变量，回归并购目标公司绩效变化的百分比，研究并购后收购目标公司的ESG得分对并购后收购目标公司ROA和股价变化的影响。本研究通过两种方法——将目标公司的ESG系数表示为收购方ESG的线性函数，并根据收购方的ESG水平将交易分为两组——来探索这种影响是否受到并购前收购方ESG水平的影响，从而对现有文献做出了贡献。结果表明，在95%的置信水平下，目标公司ESG得分对收购方净资产收益率变化的影响显著，且在低ESG和高ESG收购方群体中存在差异。虽然大多数收购者在交易后一年的总资产回报率都会下降，但低esg收购者的总资产回报率下降会加剧，而高esg收购者的总资产回报率下降会有所缓解。这种差异可以归因于，如果目标公司的ESG水平提高，低ESG收购者的临时整合成本要高于高ESG收购者。此外，本研究得出的结论是，目标公司ESG得分的影响对并购前后收购方的股价变化没有显著影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Green Finance Multiple-

CiteScore

9.60

自引率

3.50%

发文量

审稿时长

6 weeks

期刊介绍： Green Finance is an international, interdisciplinary Open Access journal dedicated to green finance, environmental, and sustainability research and practice. It offers a platform for publishing original contributions and technical reviews on green finance and related topics, following a rigorous peer-review process. Accepted article types include original research, reviews, editorials, letters, and conference reports.