In this study, we utilize the most recent ESG (Environmental, Social, and Governance) data to calculate the ESG distance between acquiring and target firms, subsequently assessing its impact on merger outcomes. Our analysis suggests that deals with a larger ESG distance are associated with reduced cumulative abnormal returns (CARs) around the deal announcements. We find that, following the Kyoto Protocol in 2005, counterparties with larger ESG distances are less favored by investors. This suggests that the market perceives significant ESG distance as a potential impediment to seamless post-merger integration. Notably, a pronounced acquirer-target ESG distance diminishes the propensity for mergers, especially when target firms with more bargaining power during the negotiation. In the long-term performance of acquiring firms, we discern that ESG disparity reduces firm performance and increases crash risk.

中文翻译：

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ESG 距离对并购的影响


在这项研究中，我们利用最新的 ESG（环境、社会和治理）数据来计算收购公司和目标公司之间的 ESG 差距，然后评估其对合并结果的影响。我们的分析表明，ESG 距离较大的交易与交易公告前后的累积异常回报 （CAR） 降低有关。我们发现，在 2005 年的《京都议定书》之后，ESG 距离较大的交易对手不太受投资者青睐。这表明，市场将显著的 ESG 距离视为并购后无缝整合的潜在障碍。值得注意的是，收购方与目标公司的 ESG 距离明显降低了合并的倾向，尤其是当目标公司在谈判中具有更大的议价能力时。在收购公司的长期表现中，我们发现 ESG 差异会降低公司绩效并增加崩盘风险。