Journal article 134 views 17 downloads
Environmental innovation and takeover performance
Business Strategy and the Environment
Swansea University Author:
Tunyi Tunyi Abongeh
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© 2024 The Author(s). This is an open access article under the terms of the Creative Commons Attribution License.
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DOI (Published version): 10.1002/bse.3822
Abstract
Drawing from the resource-based view (RBV), we examine the effect of environmentalinnovation on mergers and acquisitions (M&As) announcement returns. Using aninternational sample of M&As for the period 2003 to 2021 and an event study methodology,we document that acquirers with higher environ...
Published in: | Business Strategy and the Environment |
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ISSN: | 0964-4733 1099-0836 |
Published: |
Wiley
2024
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Online Access: |
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URI: | https://cronfa.swan.ac.uk/Record/cronfa66468 |
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Abstract: |
Drawing from the resource-based view (RBV), we examine the effect of environmentalinnovation on mergers and acquisitions (M&As) announcement returns. Using aninternational sample of M&As for the period 2003 to 2021 and an event study methodology,we document that acquirers with higher environmental innovation — innovativeacquirers — earn average deal announcement abnormal returns that are 0.10 to 0.50percentage points higher than those earned by their non-innovative counterparts. Theseresults are consistent across three important forms of environmental innovation (i.e.,product, process and organizational innovation) and are partly explained by the transferof environmental innovation from the acquirer to the target. We further find thatenvironmentally innovative acquirers are more likely to engage in majority control andcross-border acquisitions, thus emphasizing the transfer effect. Overall, we contributeto RBV by providing evidence that environmental innovation is a distinctive resource ordynamic capability that is transferable from bidders to targets in the takeover market. |
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Keywords: |
announcement returns, environmental innovation, international M&As, resource based view |
College: |
Faculty of Humanities and Social Sciences |