 M&A activity as a driver for better ESG performanceVictor Barros, Pedro Verga Matos, Joaquim Miranda Sarmento and Pedro Rino Vieira Technological Forecasting and Social Change, 2022, vol. 175, issue C Abstract: This paper examines whether mergers and acquisitions (M&A) operations impact firms’ performances on triple ESG pillars (environment, social, and governance) using a large panel covering 41 countries and 12 economic sectors between 2002 and 2020. We provide evidence that M&A deals have a positive impact on the ESG score of firms. However, this improvement in the ESG score is not attained immediately, and there is no impact on the ESG score in the year in which the deal is agreed upon. However, an M&A deal appears to be significant in increasing ESG performance when the year following the transaction is considered on its own. Similar results are obtained when considering each of the three pillars – environmental, social, and governance. This paper contributes to both the M&A and sustainability literature by exploring a new topic that addresses the relationship between the two. Policy implications for authorities, regulators, managers, and other stakeholders are also outlined. Keywords: Mergers; Acquisitions; Sustainability; Ratings; ESG (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:175:y:2022:i:c:s0040162521007691 DOI: 10.1016/j.techfore.2021.121338 Access Statistics for this article Technological Forecasting and Social Change is currently edited by Fred Phillips More articles in Technological Forecasting and Social Change from Elsevier |
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