Can ESG mitigate the diversification discount in cross-border M&amp;A?

Kim, Byoung-Jin; Jung, Jinyoung; Cho, Sung-woo

doi:10.1016/j.bir.2021.09.002

Cited by 21 publications

(10 citation statements)

References 29 publications

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“…As a result, the financial sector's environmental, social, and governance (ESG) consciousness is growing (Morae et al, 2022). ESG engagement has a beneficial impact on cross-border M&A business performance, confirming stakeholder theory and demonstrating that ESG may be used as a strategy to improve cross-border M and A business efficiency (Kim et al, 2022).…”

Section: Introductionsupporting

confidence: 58%

Dynamics of Volatility Spillover between Energy and Environmental, Social and Sustainable Indices

Babu

Lourdesraj

Hariharan³

et al. 2022

IJEEP

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The purpose of this research was to examine the dynamics of volatility spillover between energy and environmental, social, and sustainable indices. COVID19 prompted the research to select April 2019 to March 2022 as a sample period, and the respective data (Daily Prices) of the Nifty Energy and Nifty ESG indices were obtained from the National Stock Exchange of India Limited. The outcomes of the study confirmed that the daily returns of Nifty Energy and Nifty 100 ESG indices were not normally distributed and reached stationarity at level difference. Further, the study employed GARCH Models such as ARCH, GARCH (1,1), and GARCH-M to determine conditional volatility, and it validated the ARCH influence on the daily returns of the Nifty Energy and Nifty 100 ESG, during the study period

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Section: Introductionsupporting

confidence: 58%

Dynamics of Volatility Spillover between Energy and Environmental, Social and Sustainable Indices

Babu

Lourdesraj

Hariharan³

et al. 2022

IJEEP

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“…Massa and Xu (2013) stated that the target's high market value is an important factor to promote M&A deals because the stock of the acquirer may increase in liquidity and value. Moreover, findings from a Korean research show that high ESG engagement enhances business efficiency in cross-border M&ARR, suggesting that good ESG performance brings positive effects on M&A activities (Kim et al. , 2022).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…However, a bidirectional correlation exists between ESG and M&A. Based on stakeholder theory, a Korean study showed that high ESG engagement positively affects corporate performance after cross-border M&A deals (Kim et al, 2022). Moreover, Barros et al (2022) noted that the improvement of the three individual pillars of ESG can all enhance the acquirer's performance.…”

Section: Introductionmentioning

confidence: 99%

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M&A activity and ESG performance: evidence from China

Rahman,

2023

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PurposeThis study explores the effect of mergers and acquisitions (M&As) on corporations' environmental, social and governance (ESG) performance and values in the Chinese financial market.Design/methodology/approachThis study collected data covering 158 Chinese listed companies that have successfully completed at least one M&A activity between 2011 and 2020. Fixed effect and random models based on the Hausman test are adopted to mitigate potential heterogeneity issues in the selection.FindingsResults show that acquiring targets with high ESG performance can help increase their own ESG performance, which in turn increases their market values. Heterogeneity and robustness tests also provide consistent results. Findings further confirm the bidirectional correlation between ESG and M&As, and then enrich related literature by suggesting the importance of utilizing M&As as a driver to increase corporate ESG performance.Originality/valueThis study embodies the practical implications of ESG and M&A. Managers, investors and policymakers can highly benefit from the results through practical applications.

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“…The independent variables used in this study include environment, social, and governance (ESG). Kim et al (2021) environment, social, and governance (ESG) is a business strategy in which a company develops and maintains its business in the long term by seeking collaboration, consensus, and symbiotic relationships with various stakeholders in the environment. Environmental disclosure considers how a company conducts its business in an environmentally responsible manner.…”

Section: Introductionmentioning

confidence: 99%

Effect of Environment, Social and Governance Disclosure on Firm Value

Suretno

Adrianto

Alfarisi

2022

jbti

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This study aims to determine the environmental, social, and governance of the firm value in this study are all companies listed on the Indonesia Stock Exchange from 2016-2020. The determination of the sample in this study used purposive sampling with the number of samples used by as many as 27 companies during the year. a period of 5 consecutive years of observation so that the total sample obtained is 135. This study uses Stata 14, the analytical technique used is panel data regression analysis. The results showed that the first hypothesis was found that the environment variable's disclosure had a positive and significant effect on firm value in companies listed on the Indonesia Stock Exchange. Social variable disclosure has a positive and significant impact on firm value in companies listed on the Indonesia Stock Exchange. Governance variable disclosure has a negative and significant impact on firm value in companies listed on the Indonesia Stock Exchange. While testing with the control variable, namely the company's size, partially has a significant negative effect on firm value, the leverage and profitability variables partially have a significant effect on firm value.

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Can ESG mitigate the diversification discount in cross-border M&A?

Cited by 21 publications

References 29 publications

Dynamics of Volatility Spillover between Energy and Environmental, Social and Sustainable Indices

Dynamics of Volatility Spillover between Energy and Environmental, Social and Sustainable Indices

M&A activity and ESG performance: evidence from China

Effect of Environment, Social and Governance Disclosure on Firm Value

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