Material ESG Performance and Bid Premium in Merger and Acquisition Deals

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Material ESG Performance and Bid Premium in Merger and Acquisition Deals

Popis výsledku v původním jazyce

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&amp;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&amp;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&amp;A pricing decisions, particularly in a globalised and volatile market context. © 2025 The Author(s). International Journal of Finance &amp; Economics published by John Wiley &amp; Sons Ltd.

Název v anglickém jazyce

Material ESG Performance and Bid Premium in Merger and Acquisition Deals

Popis výsledku anglicky

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&amp;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&amp;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&amp;A pricing decisions, particularly in a globalised and volatile market context. © 2025 The Author(s). International Journal of Finance &amp; Economics published by John Wiley &amp; Sons Ltd.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

INTERNATIONAL JOURNAL OF FINANCE &amp; ECONOMICS

ISSN

1076-9307

e-ISSN

1099-1158

Svazek periodika

neuveden

Číslo periodika v rámci svazku

18 září 2025

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

20

Strana od-do

"nestrankovano"

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-105016495706