Does corporate ESG create value? New evidence from M&As in China

Zheng, z., Li, J. ORCID: https://orcid.org/0000-0003-0549-5551, Ren, X. and Jie, G. (2023) Does corporate ESG create value? New evidence from M&As in China. Pacific-Basin Finance Journal, 77. 101916. ISSN 0927538X doi: 10.1016/j.pacfin.2022.101916

Abstract/Summary

Using a large sample of Chinese companies’ domestic M&A, this study provides new evidence on the financial payback of corporate ESG and its dynamics. We find that acquirers’ ESG rating is positively correlated to post-M&A performance and deal completion likelihood. Additionally, we find the relationship between acquirer’s ESG dynamic and post-M&A performance is contingent on the firm’s previous ESG standards. Overall, these findings are in line with the instrumental stakeholders’ view that high ESG performance could earn support from stakeholders for post- M&A synergy creation and emphasize the asymmetric marginal outcome of firms’ ESG efforts as a result of diminishing marginal utility of stakeholders.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/109778
Identification Number/DOI	10.1016/j.pacfin.2022.101916
Refereed	Yes
Divisions	Henley Business School > Real Estate and Planning
Publisher	Elsevier
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