Material ESG Performance and Bid Premium in Merger and Acquisition Deals
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60461373%3A22810%2F25%3A43932591" target="_blank" >RIV/60461373:22810/25:43932591 - isvavai.cz</a>
Result on the web
<a href="https://onlinelibrary.wiley.com/doi/full/10.1002/ijfe.70049" target="_blank" >https://onlinelibrary.wiley.com/doi/full/10.1002/ijfe.70049</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1002/ijfe.70049" target="_blank" >10.1002/ijfe.70049</a>
Alternative languages
Result language
angličtina
Original language name
Material ESG Performance and Bid Premium in Merger and Acquisition Deals
Original language description
This study examines the firm-level and country-level environmental, social, and governance (ESG) performance on bid premiums in cross-border mergers and acquisitions (M&A) transactions. We document considerable variations in bid premiums. Higher carbon emissions are associated with higher bid premiums, suggesting that acquirers may perceive high-emission firms as opportunities for restructuring or seek to exploit regulatory inefficiencies. In contrast, fossil fuel consumption (FFC) is linked to lower bid premiums, reflecting investor concerns over potential carbon transition risks. Strong institutional frameworks, particularly in regulatory quality and government effectiveness, are significant drivers of higher bid premiums, highlighting the importance of stable governance in M&A valuations. While cross-border transactions generally reduce bid premiums due to transaction costs and information asymmetry, firms involved in cross-border deals with block-holder ownership tend to receive higher premiums, emphasising the strategic value of foreign firms with stable block-holder ownership. ESG performance consistently enhances bid premiums, reinforcing the competitive advantage sustainability can provide in corporate transactions. Our findings contribute to the literature by offering a more comprehensive understanding of how institutional and macroeconomic factors, alongside firm-level ESG performance, shape M&A pricing decisions, particularly in a globalised and volatile market context. © 2025 The Author(s). International Journal of Finance & Economics published by John Wiley & Sons Ltd.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS
ISSN
1076-9307
e-ISSN
1099-1158
Volume of the periodical
neuveden
Issue of the periodical within the volume
18 září 2025
Country of publishing house
GB - UNITED KINGDOM
Number of pages
20
Pages from-to
"nestrankovano"
UT code for WoS article
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EID of the result in the Scopus database
2-s2.0-105016495706