The strategic choice of payment method in takeovers: The role of environmental, social and governance performance

Perego, Paolo

doi:10.1002/bse.3125

Cited by 11 publications

(13 citation statements)

References 101 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In line with prior research, we measured acquirer sustainability by using the ESG scores provided by Refinitiv Eikon (Arouri, Gomes and Pukthuanthong, 2019; Gomes and Marsat, 2018; Hussaini, Rigoni and Perego, 2022; Jost et al. , 2022; Tampakoudis and Anagnostopoulou, 2020; Yadav, Han and Rho, 2016).…”

Section: Methodsmentioning

confidence: 99%

“…Acquirer sustainability. In line with prior research, we measured acquirer sustainability by using the ESG scores provided by Refinitiv Eikon (Arouri, Gomes and Pukthuanthong, 2019;Gomes and Marsat, 2018;Hussaini, Rigoni and Perego, 2022;Jost et al, 2022;Tampakoudis and Anagnostopoulou, 2020;Yadav, Han and Rho, 2016). ESG scores are key indicators of a corporation's non-financial performance that aim to measure its sustainable and ethical behaviours and contribute to defining its market valuation, together with the traditional financial metrics (Boerner, 2007).…”

Section: Explanatory Variablesmentioning

confidence: 99%

See 1 more Smart Citation

When do M&As with Fintech Firms Benefit Traditional Banks?

Collevecchio

Cappa

Peruffo

et al. 2023

British J of Management

View full text Add to dashboard Cite

In the last decade, fintech has emerged in the financial sector, introducing numerous innovations that have severely impacted traditional banks. To respond to fintech firms and meet the new needs of consumers, banks seek to align their offerings by integrating fintech knowledge through mergers and acquisitions (M&As) within an open innovation framework. However, it is still not clear when exactly M&As with fintech firms benefit banks. This paper examines the contingency factors that make M&As beneficial for acquirer banks by using a holistic approach that considers the type of firm, type of deal and the context in which M&As occur. We analysed the effect produced by acquirer sustainability, minority acquisitions and institutional distance between the fintech and the bank's country of incorporation by applying an event study methodology using cumulative abnormal returns to gauge effects on expected performance. We have shown which are the conditions that allow us to maximize the acquirer bank's expected performance. Our research advances the scientific understanding of M&A contingency factors, and more generally of open innovation, in the specific context of fintech and banks. Moreover, we provide managers and policymakers with initial advice on the effects fintech M&As have on traditional banks, showing that they can be beneficial under specific conditions.

show abstract

Section: Methodsmentioning

confidence: 99%

Section: Explanatory Variablesmentioning

confidence: 99%

When do M&As with Fintech Firms Benefit Traditional Banks?

Collevecchio

Cappa

Peruffo

et al. 2023

British J of Management

View full text Add to dashboard Cite

show abstract

“…Studies specifically examine whether sustainability affects bid premia [64,66]. Moreover, the analysis of the payment types in deals has been researched [67,68].…”

Section: Linking Sustainability and Mandamentioning

confidence: 99%

Understanding the Relevance of Sustainability in Mergers and Acquisitions—A Systematic Literature Review on Sustainability and Its Implications throughout Deal Stages

Kayser,

Zülch

2024

Sustainability

View full text Add to dashboard Cite

The importance of transforming business models and activities toward a sustainable economy is more urgent than ever and manifests in the adoption of international agreements and regulatory initiatives. Company transactions, including mergers and acquisitions (M&A), need to pay attention to sustainability concepts and their implications. Consequently, the current and traditional literature on M&A processes acknowledges the role of sustainability as a prerequisite for success in M&A operations. However, reviews of the relationship between sustainability and M&A from an integrative perspective that highlight the pre- and post-deal stages are limited. To bring further transparency to this context, we perform a systematic review of the academic literature on the relevance and implications of sustainability in M&A, focusing on archival studies. We present an overview of major sustainability influences at different stages of the M&A process, using the perspective of the acquirer as well as the target of sustainability. We observe that in all analyzed pre- and post-deal stages, sustainability is identified as having an impact or being impacted by M&A activities. Accordingly, practitioners’ strategic consideration of sustainability for deal origination and performance is required. Furthermore, we highlight several understudied factors and create a research agenda, as research findings are, to some extent, heterogeneous and limited.

show abstract

“…Transparency about ESG information will have a positive association with corporate efficiency and firm value (Xie et al, 2019; Yu et al, 2018). Hussaini et al (2022) infer that ESG coverage affects strategic considerations in the choice of takeovers because ESG not only reduces information asymmetry but also enhances financing capability. Furthermore, Cerqueti et al (2021) provide theoretical and empirical evidence that integrating ESG considerations can reduce systematic risk for equity mutual funds.…”

Section: Introductionmentioning

confidence: 99%

Sustainable development for private equity: Integrating environment, social, and governance factors into partnership valuation

et al. 2022

View full text Add to dashboard Cite

General partners (GPs) of private equity (PE) are facing increasing pressure from limited partners (LPs) to make investments that meet environmental, social, and governance (ESG) targets. We develop a tractable model to analyze an LP's valuation of participating in PE investment when the ESG factors are objectives. Integrating the ESG factors makes the LP commit to investing capital in ESG demand spending and choosing sustainable PE, which has an inverted U‐shaped effect on the LP's certainty‐equivalent wealth. At the optimal ESG demand spending, the LP tends to choose more consumption but less public equity investment due to his or her positive expectation about higher certainty‐equivalent wealth from PE investment. However, an endogenous risk‐aversion attitude and exogenous idiosyncratic risk will have an adverse effect and make the LP less eager to integrate the ESG factors for sustainable development. Thus, the optimal ESG demand decreases, and the LP requires a higher break‐even excess return. Our analysis provides new theoretical insights for both PE partners and regulators when integrating ESG factors and sustainable concepts into PE valuation and management.

show abstract

The strategic choice of payment method in takeovers: The role of environmental, social and governance performance

Cited by 11 publications

References 101 publications

When do M&As with Fintech Firms Benefit Traditional Banks?

When do M&As with Fintech Firms Benefit Traditional Banks?

Understanding the Relevance of Sustainability in Mergers and Acquisitions—A Systematic Literature Review on Sustainability and Its Implications throughout Deal Stages

Sustainable development for private equity: Integrating environment, social, and governance factors into partnership valuation

Contact Info

Product

Resources

About