Exploration of esg growth as a driver behind mergers and acquisitions

• Main Author: Pflegpeter, Lisa
• Publication Date: 2022
• Format: Master thesis
• Language: eng
• Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
• Download full: http://hdl.handle.net/10362/157178
• topic: Corporate finance; Mergers and acquisitions; Esg (environment); Social and governance); Csr (corporate social responsibility); Corporate governance; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This thesis investigates the association between ESG scores and M&A activity. This is done by evaluating whether low-ESG acquirors target high-ESG firms to enhance their ESG ratings. A sample of 151 M&A deals between 2010 and 2018 is used for which ESG data for targets and acquirors, as well as post-acquisition scores, are available. Through utilizing quantitative analyses and ESG scores as key measures, the study concludes that the acquirors’ ESG scores do not increase within one year post-deal-announcement but suggests that acquirors target firms with higher ESG scores than their own.