How Does Foreign Acquirers’ ESG Misbehaviour Exposure Affect the Completion of Cross‐Border Acquisitions?
研究外国收购方ESG不当行为曝光对跨境收购完成率的影响，发现曝光越高越难完成，且目标国公民权力和交易传闻会加剧这一负面效应。
Abstract This study investigates how foreign acquirers’ environmental, social and governance (ESG) misbehaviour exposure affects the completion of cross‐border acquisitions (CBAs), and how this impact varies according to citizen power in the target country and the presence of deal rumours. Using a sample of CBAs attempted by Chinese listed firms from 2011 to 2019, we find that foreign acquirers with higher ESG misbehaviour exposure are more likely to fail in CBA completions. As citizen power in the target country increases, such acquirers face greater challenges in CBA completion. In addition, deal rumours can make matters worse (akin to pouring fuel on a fire), putting foreign acquirers with high ESG misbehaviour exposure in a more unfavourable position. Overall, our findings shed light on the concerns and resistance of stakeholders in the target country towards a foreign acquirer with ESG misbehaviour exposure and demonstrate boundary conditions for such an adverse effect.