Acquirers’ carbon risk, environmental regulation, and cross-border mergers and acquisitions: evidence from China

Guo, Jianquan; Cheng, He

doi:10.1007/s10668-023-03276-z

Cited by 5 publications

(3 citation statements)

References 90 publications

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“…Examining the impact of acquirers' sustainability risks on target selection, studies find an increased likelihood of acquiring foreign targets for emission risk reduction [76,77]. High-emitting companies in the manufacturing industry are likely to diversify the risks of their carbon emissions through cross-border M&A investments in countries with weak environmental, regulatory, or governance standards.…”

Section: Resultsmentioning

confidence: 99%

“…In contrast, the environmental pillar is mostly concerned with the target selection stage when acquiring firms that pursue emission risk mitigation acquisitions cross-border [76,77]. This is expected to result from heterogeneous strictness and aspirations in environmental policies across countries [11].…”

Section: Summary and Synthesismentioning

confidence: 99%

“…Different regional priorities and stringencies on sustainability might limit the effectiveness of global sustainability aspirations. The indication that cross-border M&A is potentially used as a carbon risk reduction tool by carbon-intensive manufacturing firms to relocate polluting activities to developing countries indicates this [76,77,94]. Without global coordination, strengthening domestic environmental policies could create an unintended negative externality, pushing firms to pollute elsewhere [11].…”

Section: Regulatory Implicationsmentioning

confidence: 99%

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Understanding the Relevance of Sustainability in Mergers and Acquisitions—A Systematic Literature Review on Sustainability and Its Implications throughout Deal Stages

Kayser,

Zülch

2024

Sustainability

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The importance of transforming business models and activities toward a sustainable economy is more urgent than ever and manifests in the adoption of international agreements and regulatory initiatives. Company transactions, including mergers and acquisitions (M&A), need to pay attention to sustainability concepts and their implications. Consequently, the current and traditional literature on M&A processes acknowledges the role of sustainability as a prerequisite for success in M&A operations. However, reviews of the relationship between sustainability and M&A from an integrative perspective that highlight the pre- and post-deal stages are limited. To bring further transparency to this context, we perform a systematic review of the academic literature on the relevance and implications of sustainability in M&A, focusing on archival studies. We present an overview of major sustainability influences at different stages of the M&A process, using the perspective of the acquirer as well as the target of sustainability. We observe that in all analyzed pre- and post-deal stages, sustainability is identified as having an impact or being impacted by M&A activities. Accordingly, practitioners’ strategic consideration of sustainability for deal origination and performance is required. Furthermore, we highlight several understudied factors and create a research agenda, as research findings are, to some extent, heterogeneous and limited.

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Section: Resultsmentioning

confidence: 99%