Can ESG Responsibility Fulfillment Increase the Likelihood of Enterprises Being Acquired by Foreign Capital?:Based on Empirical Data of Listed Companies
This paper examines the impact and mechanism of ESG(environmental,social and governance)ratings on cross-border M&A,utilizing data from Chinese A-share listed companies during 2009-2021.The findings indicate that superior ESG performance significantly enhances the probability of foreign acquisitions.Specifically,compared to non-state-owned enterprises and central and western regions,the effect is more pronounced in state-owned enterprises and eastern regions.Compared to firms in heavily polluting industries and regions with weak environmental regulations,superior ESG performance significantly increases the likelihood of foreign acquisitions for firms in non-heavily polluting industries and regions with stringent environmental regulations.Mechanism analysis demonstrates that ESG development enhances corporate social reputation and governance capabilities while reducing operational costs,thereby increasing firm value.Additionally,it promotes technological innovation,alleviates financing constraints,and increases R&D investment,leading to improved productivity levels.These improvements in firm value and productivity subsequently increase the probability of foreign acquisitions.This study illuminates the crucial role of host country firms'ESG development in attracting foreign investment and provides important implications for China's global communication of sustainable development practices.
foreign M&AESGresponsibility fulfillmentproductivityenterprise value
NETL
NSTL
万方数据
