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

Zheng, Zhigang; Li, Jiarong; Ren, Xingzi; Guo, Jie Michael

Authors

Zhigang Zheng

Jiarong Li

Xingzi Ren



Abstract

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.

Journal Article Type Article
Acceptance Date Dec 8, 2022
Online Publication Date Dec 14, 2022
Publication Date 2023-02
Deposit Date Dec 28, 2022
Publicly Available Date Jun 15, 2024
Journal Pacific-Basin Finance Journal
Print ISSN 0927-538X
Electronic ISSN 1879-0585
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 77
Article Number 101916
DOI https://doi.org/10.1016/j.pacfin.2022.101916
Public URL https://durham-repository.worktribe.com/output/1186300

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