The Role of ESG in M&A Announcement Returns: Global Analysis from 2002 to 2023
Loading...
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Bachelor's thesis
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.
Authors
Date
2024
Department
Major/Subject
Mcode
Degree programme
Rahoitus
Language
en
Pages
32
Series
Abstract
This thesis investigates the relationship between environmental, social, and governance (ESG) scores and acquirer announcement returns. Using a sample of 1,044 transactions from 2002 to 2023, it examines the link between ESG metrics and cumulative abnormal returns (CARs) around the announcement date for acquirers. For the full sample, the mean return is significant (0.39%), but ESG score grouping produce mixed results. By dividing the sample into pre- and postfinancial crisis periods, the results show that high ESG acquirers consistently perform better in the post-crisis period. When analyzing ESG dimensions individually, the governance score emerges as particularly significant in both periods. These findings align with prior research, such as Deng et al. (2013) on corporate social responsibility (CSR) and Masulis et al. (2007) on governance, highlighting the role of ESG in acquirer returns. The results remain similar after accounting for deal and firm characteristics.Description
Thesis advisor
Conlin, AndrewKeywords
merger, acqusition, ESG, CSR