The aim of this paper is to investigate the investors’ reaction to environmental actions taken by companies such as the issues of “green bond”. We conduct an event study around the announcement of green bond issuances for all publicly traded companies in the World in the period 2013-2019 (the largest period in literature on this field). Using CARs, we investigate the stock price behavior to green bond issues for 414 listed companies and we demonstrated significant stock price increases around the announcement date of first-time green bond issues. For second issues, the positive stock price reaction to eco-friendly initiatives decreases while it completely disappears for the subsequent issues. From the management perspective, green bond issue seems an eco-friendly action with decreasing marginal benefits, because after the first issue, the market is already aware about the firm’s commitment to green projects.

Achieving successful integration of mergers and acquisitions (M&A) continues to pose serious challenges for cross-border acquirers. The aim of this paper was to analyze the impact of cross border M&A on bidder and target companies' post-M&A profitability, leverage and growth in sales/invested capital. We used a sample of 415 Italian bidder companies and 370 Italian target companies over the period of 2006-2013. Our analysis suggests that the cultural distance exerts positive effects on bidder companies' post-M&A performance and a negative effect on target companies. Bidder companies better exploit the source of value in terms of competencies and resources, learning from their counterparties. The results suggest that the effect of culture distance is conditioned by the acquirer size, prior experience and managerial capabilities in dealing with cross-border cultural challenges. Profitability ratios show a significant increase in bidder companies, while target companies do not reveal any significant change in the comparison pre-post M&A. Leverage reveals no significant difference in bidder companies, while target companies have a higher leverage after a cross-border M&A. In cross-border M&A, the private equity funds as acquirer do not generate any incremental benefit from the target companies' post M&A performance.Note 7. After having collected journal foreign exchange rates from the Bank of Italy dataset for each currency of each target country, volatility was computed for three years prior to acquisition.Note 8. The number of observations used in each model is lower than that of deals included in our study due to the missing values. More specifically, we have the following information: 205 observations for the model 1 bidder, 163 observations for the model 2 bidder, 184 observations for the model 3 bidder, 215 observations for the model 4 bidder, 188 observations for the Model 1 Target, 289 observations for the model 1 and 3 targets; 183 observations for the model 5 target.

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This study falls within the literature on connections between market microstructure of firm’s securities and corporate finance. We conduct an analysis on a sample of firms added to the FTSE 100, over the time-period 2005-2017, following the evidence, widely documented in literature, that additions to major indexes are exogenous liquidity-enhancing events. We study the improvement in liquidity and expansion in capital spending, either in the univariate analysis, either in multivariate analysis. Our results confirm that changes in stock liquidity are positively associated to changes in capital expenditures, especially on a 3-years horizon. Managers should consider the benefit of greater stock liquidity in order to maximize the value of the firm.