Sustainability as a stumbling block in closing acquisitions? The joint effect of target and acquirer ESG performance on time to completion
Just R, Sommer F, Heubeck T, Meckl R (2023)
Publication Type: Journal article
Publication year: 2023
Journal
Book Volume: 58
Article Number: 104422
DOI: 10.1016/j.frl.2023.104422
Abstract
Sustainability is currently a major concern in business and society. As environmental, social, and governance (ESG) aspects are also considered in acquisitions, e.g., through time-consuming ESG due diligences, we investigate whether differences in ESG performance delay the closing of acquisitions. Using a sample of global M&A transactions, we measure ESG performance using the Refinitiv Eikon ESG scores and time to completion (TTC) as the number of days between the announcement and closing of a transaction. Our results show that larger differences in ESG performance between acquirer and target lead to shorter TTC when acquirer ESG performance exceeds target ESG performance.
Involved external institutions
Germany (DE)How to cite
APA:
Just, R., Sommer, F., Heubeck, T., & Meckl, R. (2023). Sustainability as a stumbling block in closing acquisitions? The joint effect of target and acquirer ESG performance on time to completion. Finance Research Letters, 58. https://doi.org/10.1016/j.frl.2023.104422
MLA:
Just, Ruben, et al. "Sustainability as a stumbling block in closing acquisitions? The joint effect of target and acquirer ESG performance on time to completion." Finance Research Letters 58 (2023).
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